The problems of thin markets can be addressed by:
A. guaranteed price matching.
B. increasing the number of sellers in the market.
C. imposing price ceilings.
D. warranties and repair guarantees.
Answer: D
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Revealed preference is:
A. the idea that people's preferences can be determined by observing their choices and behavior. B. the notion that people reveal the utility they get by reporting it on a numerical scale. C. the method that psychologists, anthropologists, and economists use to measure utility. D. All of these are true.
If the Fed lowers the discount rate (relative to the federal funds rate), banks will (likely) borrow __________ from the Fed, which will __________ reserves in the banking system, and eventually __________ the money supply
A) less; decrease; lower B) more; increase; raise C) the same amount; not change; lower D) more; decrease; raise E) none of the above
When people want to hold money to make regular planned expenditures, this is
A. the asset demand for money. B. the precautionary demand for money. C. the spending demand for money. D. the transaction demand for money.
If the MPC in an economy is .9, a $1 billion increase in government spending will ultimately increase consumption by:
A. $1 billion. B. $0.9 billion. C. $10 billion. D. $9 billion.