Given the prices of two goods, all quantity combinations outside the budget line are:
a. undesirable.
b. inefficient.
c. inferior.
d. unattainable.
d
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Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) lower; lower B) lower; higher C) higher; higher D) higher; lower
An official of the client company took securities from the safe deposit box and sold them to obtain cash to meet a personal financial crisis. Even with proper internal control, if the official purchased identical securities before the year-end and placed them in the safe deposit box, this improper "borrowing" would probably go undetected during the annual audit.
a. true b. false
Increases in long-run average cost that result from output increases is
A) the law of diminishing marginal product. B) economies of scale. C) constant returns to scale. D) diseconomies of scale.
Other things equal, which of the following would increase the federal funds rate?
A. A decrease in loan demand in the federal funds market. B. A decrease in the reserve ratio. C. Fed purchases of government securities from banks. D. A decline in excess reserves in the banking system.