To fight a recession, the Fed can

A) raise the federal funds rate by buying securities.
B) raise the federal funds rate by selling securities.
C) lower the federal funds rate by buying securities.
D) lower the federal funds rate by selling securities.
E) lower income taxes on interest income.


C

Economics

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Which of the following is likely to cause the supply curve for steel window frames to shift to the right?

A) A decrease in the cost of production of steel due to a new subsidy B) A fall in the number of steel window frame producers due to factory lockouts C) A rise in the market price of steel window frames due to an increase in demand D) An increase in the wages of labor working in steel firms due to demands by trade unions

Economics

In the aggregate expenditure model, ________ has both an autonomous component and an induced component

A) planned investment spending B) government spending C) consumption spending D) net export spending

Economics

Total product is maximized where

A) average product is maximized. B) marginal product is maximized. C) average product is equal to 0. D) marginal product is equal to 0.

Economics

One country has a comparative advantage over another country in the production of a good if it

A) has a curved production possibilities curve and the other country has a linear production possibilities curve. B) has a linear production possibilities curve and the other country has a curved production possibilities curve. C) is a lower opportunity cost producer of the good. D) has lower fixed costs than the other country.

Economics