In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy
B) targeting the fed funds rate
C) quantitative easing
D) targeting the inflation rate
C
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What is the price elasticity of demand at any point on a perfectly inelastic demand curve?
A cartel is formed among the major firms in an industry that maximizes joint profits of the firms. Each firm:
A. will be protected from the economic effects of a recession. B. has the incentive to cheat by cutting its price. C. has a perfectly elastic demand for its product. D. will operate at the level of output associated with the kink in the demand curve.
When quantity demanded equals quantity supplied,
A. there must be no government intervention in the market. B. the market is in equilibrium. C. the demand curve must be the same as the supply curve. D. all of the above
An increase in a country's saving rate will tend to cause which of the following in the long run?
A) a reduction in per capita real GDP B) an increase in economic growth C) an increase in the unemployment rate D) an increase in the rate of inflation