The monetary policy weapon least often used by the Fed is ____________.
Fill in the blank(s) with the appropriate word(s).
changing reserve requirements
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If wages decrease and workers choose to work more hours or more shifts, their behavior is evidence of
a. the substitution effect. b. the income effect. c. rational expectations. d. rational ignorance.
ZZL Corporation has the opportunity to undertake an investment project that will cost $20,000 today. If the interest rate is 20 percent and if the project will yield the company $30,000 in 3 years, then ZZL will undertake the project
a. True b. False Indicate whether the statement is true or false
When two goods are perfect substitutes, the marginal rate of substitution
a. is constant along the indifference curve. b. decreases as the scarcity of one good increases. c. increases as the scarcity of one good increases. d. changes to reflect the consumer's changing preferences for the goods.
Other things constant, countries with higher investment rates will
A) have lower standards of living. B) tend to have higher incomes in the future. C) have to use central government planning to allocate investment. D) have to impose high taxes in order to finance the investment.