How well did the Federal Reserve Banks perform during the Great Depression?
(A) The Chair of the Board of Governors made bad decisions and directed the Federal Reserve Banks to act in harmful ways.
(B) The Federal Reserve System skillfully guided the United States economy out of the Great Depression.
(C) Individual governors of the Federal Reserve Banks disagreed over policy and were unable to stop the depression.
(D) The Great Depression took place before the Federal Reserve System was established.
Answer: (C) Individual governors of the Federal Reserve Banks disagreed over policy and were unable to stop the depression.
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This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. MiiTunes charges high prices and The Rock Shop does not enter. B. MiiTunes charges low prices and The Rock Shop enters. C. MiiTunes charges low prices and The Rock Shop does not enter. D. MiiTunes charges high prices and The Rock Shop enters.
If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that:
A. Y and Z are complements. B. Y and Z are substitutes. C. Y and Z are unrelated. D. Y is a normal good and Z is an inferior good.
Figure 17.1 depicts a firm's marginal revenue product curve. If the product price is $2, what is the marginal product of the 30th hour of labor?
A. 5 units B. 6 units C. 7 units D. 8 units
If the slope of a straight line is -2. and if X (the variable on the horizontal axis) decreases by 8, then Y (the variable on the vertical axis) will
A. decrease by 16. B. increase by 16. C. increase by 4. D. decrease by 4.