The Federal Reserve influences the level of interest rates in the short run by changing the
A) demand for money through changes in reserve requirements.
B) supply of money through open market operations.
C) supply of money through changes in stock market operations.
D) demand for money through open market operations.
B
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Refer to Scenario 2. If the age of a house is 25 years with 1,500 square feet, what is the estimated market value of the house?
What will be an ideal response?
Your roommate tells you she's going to join the gym next week. A week and a half goes by and you ask her how the gym is going, and she tells you she's going to wait until the following week. Your roommate's preferences are:
A. better today than tomorrow. B. time inconsistent. C. mistakes. D. considered bad choices.
If an excise tax is imposed on shoes,
a. government tax revenue will fall b. the market price of shoes will decrease c. the supply curve will shift downward d. the equilibrium quantity demanded will decrease e. the equilibrium quantity supplied will increase