Refer to the data for a utility-maximizing consumer. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $12 budget?
A. 5 of X and 7 of Y.
B. 7 of X and 5 of Y.
C. 6 of X and 6 of Y.
D. 5 of X and 6 of Y.
A. 5 of X and 7 of Y.
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Suppose the United States spends more on foreign goods and services than foreigners spend on our goods and services and the United States sells no foreign assets. Then the
A) United States must borrow an amount equal to national saving. B) United States must borrow an amount equal to imports minus exports. C) rest of the world may or may not finance the U.S. trade deficit. D) United States must borrow an amount equal to consumption expenditure plus investment.
If an economy is at its potential output level, which of the following is not true?
a. The economy is at its full-employment output level. b. Unemployment is at the natural level. c. The price level is zero. d. The output level being produced can be sustained indefinitely given the economy's resources and technology. e. The only unemployment is frictional or structural.
A firm in a perfectly competitive market:
A. must take the price that is determined in the market. B. must reduce its price if it wants to sell a larger quantity. C. must be large relative to the total market. D. can exert a major influence on the market price.
Why is it technically incorrect to say that the board of directors of the regional Fed banks set the discount rate that each bank charges?
What will be an ideal response?