Monetary policy primarily influences the economy through changes in:
A. the interest rate.
B. spending by government.
C. spending by the Fed.
D. the discount rate.
A. the interest rate.
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If Ep is 2500 and Y is 3000, then
A) planned inventory accumulation is 500. B) planned inventory depletion is 500. C) unplanned inventory accumulation is 500. D) unplanned inventory decumulation is 500.
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. John expects the value of his earnings to be ________ if he expands and ________ if he does not expand.
A. $320,000; $200,000 B. $170,000; $50,000 C. $120,000; $200,000 D. $30,000; $200,000
On a Phillips curve diagram, an increase in the rate of inflation, other things being equal, is represented by a(n):
a. upward movement along the Phillips curve. b. downward movement along the Phillips curve. c. upward shift of the Phillips curve. d. downward shift of the Phillips curve.
The demand for labor is
A. derived from the satisfaction workers get for being employed. B. derived from a utility-maximizing process similar to that used to derive the demand curve for all workers in a given industry. C. derived from the demand for the final product of the firm. D. derived from the satisfaction that hiring labor provides the owner of the firm.