When companies first sell shares of stock to the public, this is called
A. primary lending.
B. an initial public offering.
C. financial intermediation.
D. venture capital funding.
Answer: B
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Proponents of the interest-rate-based monetary policy transmission mechanism argue that when the Federal Reserve buys bonds, there will be
A. a decrease in the money supply. B. a decrease in the price of outstanding bonds. C. an increase in investment spending. D. a decrease in nominal Gross Domestic Product (GDP), but not in real income.
If the slope of the indifference curve for goods X and Y is -2, then the marginal rate of substitution is
A. 0. B. 1/2. C. 2. D. infinite.
Which of the following actions has no effect on the total money supply?
A. There is a transfer of deposits from one bank to another bank. B. There is change in the money multiplier. C. The Federal Open Market Committee buys government securities. D. The Federal Open Market Committee sells government securities.
Regarding the production of health care, more recent studies suggest that:
A) economies of scale exist up to a hospital size of approximately 500 beds. B) hospitals of many different sizes can compete effectively with each other on the basis of cost. C) the LRAC curve exhibits significant diseconomies of scale beginning with a hospital size of approximately 100 beds. D) the LRAC for hospitals exhibits a very distinct U shape.