Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer
b. a commercial bank purchasing U.S. securities from the Fed as an investment
c. an increase in reserve requirements
d. an increase in the discount rate
a
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One morning while working on an assignment, you realize that your computer is functioning very slow because of a new virus. Hence, you decide to get your computer serviced
Using this scenario, distinguish between the proximate cause and fundamental cause of getting your computer serviced.
Monetarists believe the best way to halt inflation is to
a. put more money into the economy b. raise taxes c. slow the growth rate of the money supply d. impose controls on prices e. none of the above
For a typical firm, fixed costs increase in direct proportion to the increases in output
a. True b. False Indicate whether the statement is true or false
In which countries of the world has Malthus's prediction come closest to being true?
A. The highly industrialized countries B. The less developed countries C. The non-Christian countries D. The countries in the temperate zone