If a country increases its savings rate, the steady-state equilibrium level of:
A) GDP will increase. B) investment will decrease.
C) capital stock will decrease. D) efficiency units of labor will increase.
Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different saving rates. The savings rate is higher in country A in comparison to country B.
A
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Monetary policy decisions, such as the target growth rate in the money supply or the target level for interest rates, are set by the
a. president and congress. b. Federal Reserve Board of Governors. c. Shadow Open Market Committee. d. presidents of the Federal Reserve banks. e. Federal Open Market Committee (FOMC).
Refer to the graph shown.
A monopolist that efficiently produces the profit-maximizing level of output would have per-unit cost equal to:
A. A. B. B. C. C. D. D.
When more firms enter an industry:
A. the industry supply curve will shift right. B. the amount produced by each of the new firms will be less than the amount produced by each of the original firms. C. the amount produced by each of the new firms will be greater than the amount produced by each of the original firms. D. the industry supply curve will shift left.
Checkable deposits are included in:
A. M1 but not in M2 B. M2 but not in M1 C. both M1 and M2 D. neither M1 nor M2