The law of diminishing marginal returns
A) results in average total cost (ATC) and marginal cost (MC) curves eventually increasing at an increasing rate.
B) results in MC but not ATC curves eventually increasing at an increasing rate.
C) causes average fixed costs to decline continuously as output increases.
D) causes the difference between average total cost and average variable cost to shrink as output increases.
A) results in average total cost (ATC) and marginal cost (MC) curves eventually increasing at an increasing rate.
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Government revenue generated by the issue of currency is known as ________
A) monetizing the debt B) triage C) seignorage D) hyperinflation
Suppose a German bank purchases a U.S. Treasury bond. This transaction would be recorded in the:
a. capital account. b. current account. c. goods trade balance. d. unilateral transfers.
Longer-term forecasts of the U.S. budget, a decade or more into the future, predict enormous deficits due to ________________________.
a. tax cuts for the rich b. higher government salaries c. an increase in retirees d. lower levels of competitiveness
Which of the following represents a tight monetary policy by the Fed?
A. The required reserve ratio increases, the discount rate increases, and the Fed buys government securities. B. The required reserve ratio increases, the discount rate increases, and the Fed sells government securities. C. The required reserve ratio increases, the discount rate decreases, and the Fed sells government securities. D. The required reserve ratio decreases, the discount rate increases, and the Fed buys government securities.