In response to an unanticipated tightening of monetary policy, the Fed funds rate ________ at first, then ________ after 6 to 12 months
A) rises; returns most of the way to its original value
B) falls; returns most of the way to its original value
C) remains roughly unchanged; rises significantly
D) remains roughly unchanged; falls significantly
A
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A firm enters into a consent decree to avoid an even greater legal setback. If the terms of the consent decree effectively double the firm's fixed costs, then
a. marginal cost more than doubles b. marginal cost doubles c. marginal cost remains unchanged d. average total cost remains unchanged e. average variable cost doubles
Cost-push inflation is due to:
a. labor cost increases. b. energy cost increases. c. raw material cost increases. d. all of these.
Last year, total income increased $1,000 and consumption increased $800 . An increase in government spending equal to $10 would cause output to increase by $_____ because the multiplier is ______
Fill in the blank(s) with correct word
How does the Department of Justice deal with mergers of large companies?
a. It blocks all mergers. b. It blocks any merger resulting in over 25% of market share. c. It allows mergers that increase efficiency. d. It allows mergers that reduce competition.