The prime interest rate usually:
A. rises when the federal funds rate rises.
B. rises when the discount rate falls.
C. falls when the federal funds rate rises.
D. falls when the Fed sells bonds in the open market.
A. rises when the federal funds rate rises.
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The figure above illustrates a linear demand curve. In the range from $8 to $6
A) the demand is price elastic. B) the demand is unit elastic. C) the demand is price inelastic. D) more information is needed to determine if the demand is price elastic, unit elastic, or inelastic.
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
A decrease in the price level accompanied by no change in the money wage rate leads to ________ movement along the ________ aggregate supply curve
A) a downward; short-run B) an upward; short-run C) a downward; long-run D) an upward; long-run
A nuclear disaster in an economy would cause
(a) An economy's PPF to shift outwards away from the origin. (b) A move along the PPF from left to right. (c) The PPF to shift inwards towards the origin. (d) A move along the PPF from right to left.