In late 2007, the Fed began a series of cuts in the federal funds rate. Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was
A) to increase the real interest rate.
B) to avoid a recession.
C) to encourage households to save more money.
D) to reduce the natural unemployment rate.
E) to raise the price of the dollar in the foreign exchange market.
B
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The market demand curve for a good shows ________ and the market supply curve shows ________
A) consumers' willingness to pay for the good; producers' marginal cost of producing the good B) producers' marginal cost of producing the good; consumers' willingness to pay for the good C) consumers' willingness to pay for the good; the opportunity cost of producing the good D) consumers' willingness to pay for the good; producers' total cost of producing the good
Explain how the price system eliminates a surplus
What will be an ideal response?
Fixed costs are
A) a production expense that does not vary with output. B) a production expense that changes with the quantity of output produced. C) equal to total cost divided by the units of output produced. D) the amount by which a firm's cost changes if the firm produces one more unit of output.
In general, team owners move to a new city
A. to get more luxury-box revenue. B. to win. C. to get a new stadium. D. to get a new stadium and to get more luxury-box revenue.