Refer to the diagram. If labor is the only variable input, the average product of labor is at a:
A. minimum at point b.
B. maximum at point b.
C. maximum at point a.
D. maximum at point c.
B. maximum at point b.
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The marginal propensity to consume is defined as:
A) ?C/?Yd. B) ?S/?Yd. C) ?Yd/?C. D) ?Yd/?S.
After 2003, The Federal Reserve usually keeps the discount rate
A) above the target federal funds rate. B) equal to the target federal funds rate. C) below the target federal funds rate. D) equal to zero.
Demand deposits are
a. deposits held by individuals at one of the twelve Federal Reserve District Banks. b. interest-earning savings deposits held by individuals at a banking institution. c. deposits of commercial banks at one of the twelve Federal Reserve District Banks. d. deposits of individuals that can either be withdrawn or made payable on demand to a third party by a check.
The downward slope of the aggregate demand curve is based on logic that as the price level rises, consumption, investment, and net exports all fall
a. True b. False Indicate whether the statement is true or false