If inflation is a threat, then the Fed will conduct monetary policy aimed at
A) increasing the interest rate which then will shift aggregate demand to the right.
B) decreasing the interest rate which then will shift aggregate demand to the right.
C) decreasing the interest rate which then will shift aggregate demand to the left.
D) increasing the interest rate which then will shift aggregate demand to theleft.
Ans: D) increasing the interest rate which then will shift aggregate demand to theleft.
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Consider the table below, in which each production choice represents a point on a production possibility curve.ChoiceEggsRyeA100B810C620D430E240F050This production possibility table could be graphed as a:
A. curved line with negative slope. B. straight line with negative slope. C. straight line with zero slope. D. curved line with positive slope.
A negative externality such as pollution can be corrected by
A) a subsidy to producers. B) a tax on producers. C) a subsidy to consumers. D) a stimulus to production.
Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average total cost?
A. Any of the 3 could be ATC. B. Curve 1 C. Curve 2 D. Curve 3
Suppose you used the IRR Excel function to determine whether an investment now would create enough profits in the future to be wise, and it showed the IRR to be 8%. This investment is
A. wise at interest rates above 8% and unwise at interest rates below 8%. B. wise at interest rates below 8% and unwise at interest rates above 8%. C. unwise at any interest rate. D. wise at any interest rate.