The interest-rate-based transmission mechanism assumes that the Fed can stimulate investment by
A) selling bonds.
B) buying bonds.
C) raising the discount rate relative to the federal funds rate.
D) raising the required reserve ratio.
B
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Social Security payments:
A. continue to cause the elderly to lose income over time, since payments are not adjusted for inflation. B. cause concern for retirees, due to the increase in life expectancies. C. hold their real value because they are adjusted for inflation. D. are the biggest drain on the retirees budget each year.
When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.
A. prices rise B. equilibrium is achieved C. costs of production fall D. there is a population increase
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:
Refer to the above table. The total opportunity cost of three units of tanks is:
A. 6 units of tanks
B. 350 units of autos
C. 650 units of autos
D. 1000 units of autos