Although loans in the federal funds market are very short term, such as daily, the federal funds rate is stated as an annual rate of return
a. True
b. False
A
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How feasible would it have been for the U.S. president and/or Congress to use fiscal measures to combat the 1990–1991 recession?
What will be an ideal response?
"One of the failings of a market system is the damage to the environment. Pollution would not exist with a centrally planned economy." Evaluate this statement
If a country's currency appreciates, which of the following will most likely happen?
a. Net exports will fall and aggregate demand will increase. b. Net exports will rise and aggregate demand will increase. c. Net exports will fall and aggregate demand will decrease. d. Net exports will rise and aggregate demand will decrease.
Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve. 2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping. 3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns. 4. An upward-sloping long-run supply curve indicates a constant-cost industry. 5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.