The Fed's inability to instantaneously observe changes in inflation and economic growth result in
A) information lag.
B) impact lag.
C) policy lag.
D) jet lag.
A
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The magnitude of the slope of an indifference curve
A) is equal to the marginal rate of substitution. B) always equals the relative price of the product measured along the horizontal axis. C) increases as income increases. D) decreases when income increases.
Bid-rigging is more likely when
a. auctions are larger b. auctions are infrequent c. auctions generate different sets of potential bidders d. the auctioneer is paid a fixed fee rather than on commission
When private goods have external benefits:
A. marginal social cost is greater than marginal private cost. B. marginal privates cost is greater than marginal social cost. C. marginal social benefit is greater than marginal private benefit. D. marginal private benefit is greater than marginal social benefit.
The Fed's response to the zero lower bound problem was quantitative easing (or "QE"), where the Fed buys large amounts of bonds in order to:
A. Lower the interest rates B. Increase banks' reserves C. Lower bond prices D. Reduce money supply