If the Fed sells bonds, the short run impact of this policy will tend to include:
a. an increase in the inflation rate.
b. a reduction in unemployment
c. an increase in real output.
d. an increase in real interest rates.
d
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Marginal social costs are the sum of marginal private costs and incidental costs.
Answer the following statement true (T) or false (F)
Which of the following groups tends to have the highest unemployment rate?
A. Asian adult women B. Hispanic adult men C. African-American teenagers D. White adults
The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows:
A. Unemployment is not possible in the short run. B. Demand and supply are never equal. C. Supply creates its own demand. D. Demand creates its own supply.
Suppose the interest rate is 6 percent, the expected growth rate of the firm is 3 percent, and the firm is expected to continue forever. If current profits are $1,200, what is the value of the firm?
A. $42,400 B. $40,000 C. $36,500 D. $41,200