Federal Reserve Chairman Ben Bernanke once said if all else fails, the Fed could drop money from helicopters to help the US economy. If "helicopter Ben" ever comes to the rescue and begins dropping money from the sky, the will be engaged in
A) shenanigans.
B) expansionary monetary policy.
C) operation financial Armageddon.
D) contractionary monetary policy.
B
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Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is
A) .25. B) .75. C) $1,000/$750 = 1.33. D) 1/.25 = 4.
Assume the following exchange rates for today: $1=140 yen and 1 Danish krone = $0.10. We can conclude
A) 1 yen = 280 kr. B) 1 yen = 14 kr. C) 1 kr. = 28 yen. D) 1 kr. = 14 yen.
The long run is a period of time:
a. that is too short to change the size of a firm's plant. b. that is long enough to permit changes in all the firm's inputs, both fixed and variable. c. in which production occurs beyond one year. d. in which production occurs beyond five years.
If A and B are complements, an increase in the price of good A would:
A. lead to a decrease in demand for B. B. lead to an increase in demand for B. C. have no effect on the quantity demanded of B. D. none of the statements associated with this question are correct.