A negative demand shock decreases the price level in the short run
a. True
b. False
A
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A sensible buyer will want to acquire additional information before committing herself as long as the expected value of the information she is gathering
A) is greater than the anticipated value of the purchase. B) is greater than the expected cost of acquiring it. C) will enable her to avoid all mistakes. D) will enable her to avoid possible mistakes she will subsequently regret having made.
When the exchange rate for a currency falls so that a currency trades for less of other currencies, it is said to be appreciating
a. True b. False Indicate whether the statement is true or false
A decrease in the price of a good will
a. increase supply. b. decrease supply. c. increase quantity supplied. d. decrease quantity supplied.
The Federal Reserve banks play a role in formulating monetary policy by each of the following, except:
A. making discount loans. B. participation in setting the discount rate. C. participating in FOMC meetings. D. conducting open market operations from their banks.