If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:
A. buy bonds, reduce the discount rate, and reduce reserve requirements.
B. sell bonds, reduce the discount rate, and reduce reserve requirements.
C. sell bonds, increase the discount rate, and increase reserve requirements.
D. buy bonds, increase the discount rate, and increase reserve requirements.
Answer: C
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If people increase their rate of time preference
A) more credit is made available in the banking system. B) less credit is made available in the banking system. C) the demand for credit shifts left. D) the supply of credit shifts right.
Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero. B) Jackson's sunk cost was $100. C) Jackson's sunk cost was $200, and so was Wallace's. D) Wallace's sunk cost was $100. E) None of the above.
What does the HO model predict will happen to the real returns to factors of production after trade occurs?
a. Labor and capital must be used together in production, and there is no room for competition for remuneration. b. Capital owners always get the "gains from trade." c. Resources used intensively in export industries (such as labor in China and capital in the United States) will see an increase in their returns, whereas the resources used intensively in importcompeting industries will see a decline in their return. d. Poor nations will always get the least returns to their factors of production.
What is a marginal benefit?
What will be an ideal response?