One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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A coupon bond that has no maturity date and no repayment of principal is called a
A) consol. B) cabinet. C) Treasury bill. D) Treasury note.
If a bank has $100,000 in checkable deposits, reserves of $20,000 . and no excess reserves, then the required reserve ratio is:
a. 10 percent. b. 20 percent. c. 25 percent. d. 30 percent. e. 50 percent.
Market failure or inefficient consumption will take place in the market structures EXCEPT for
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. The firm's marginal revenue is
a. $500 b. more than $10 but less than $500 c. $10 d. less than $10 e. zero