The aggregate demand curve will shift outward and to the right when the Federal Reserve undertakes which of the following monetary policies?
a. Open market purchases of government securities
b. An increase in the discount rate
c. An increase in the reserve requirement
d. A reduction in loans to the U.S. Treasury
e. A more lenient supervision of savings and loan institutions
a
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Why do poor countries often have lower rates of economic growth than richer countries?
What will be an ideal response?
The current exchange rate system has which of the following characteristics?
A) The countries of the European Union have adopted the gold standard. B) Several developing countries in Asia have adopted the Bretton Woods system. C) The United States allows the dollar to float against other major currencies. D) The current global foreign exchange system is a fixed system. E) All developing countries allow their currencies to float against the dollar and other major currencies.
As a group, people with high incomes are likely to have
A) greater-than-average family inheritances and greater than average SAT scores. B) greater-than-average holdings of stocks and bonds and lower-than-average productivity. C) a stable marriage and no children. D) greater-than-average productivity and greater-than-average amounts of capital.
Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the production function has constant returns to scale
What will be an ideal response?