Which of the following are policy tools used by the Federal Reserve? i. the federal personal income tax ii. open market operations iii. changing the required reserve ratio
A) i only
B) ii only
C) iii only
D) ii and iii
E) i, ii, and iii
D
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Points where the aggregate expenditure (AE) curve lie above the 45° line are points where aggregate planned expenditure is
A) greater than real GDP. B) equal to real GDP. C) less than real GDP. D) the inverse of real GDP. E) not related to real GDP.
A firm's long-run average cost curve is also called its
a. profit curve b. explicit cost curve c. opportunity cost curve d. production curve e. planning curve
If a hotel room priced at 120,000 Venezuela bolivar per night can be purchased for 80 U.S. dollars, the exchange rate is:
a. 9,600 bolivar per dollar. b. 1,500 dollars per lira. c. 1,500 bolivar per dollar. d. .00066 bolivar per dollar.
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.According to the figure shown, if Dunkin Donuts expands, then Starbucks should:
A. give an ultimatum. B. also expand their business. C. not expand. D. None of these statements is true.