If nominal money supply grows 3% and real money demand grows 8%, the inflation rate is
A. 11%.
B. 5%.
C. -5%.
D. 8/3%.
Answer: C
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If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then
A) we accept the null hypothesis at a 95% confidence level. B) we reject the null hypothesis at a 95% confidence level. C) we will be wrong less than 5% of the time if we accept the null hypothesis. D) we will be wrong 95% of the time if we reject the null hypothesis.
What percentage of federal spending was financed by borrowing during 2009-2010?
a. approximately 10 percent b. approximately 20 percent c. approximately 40 percent d. more than 50 percent
Which of the following directs the buying and selling of U.S. government securities?
A. Board of Governors B. Federal Reserve Banks C. Federal Open Market Committee D. Federal Advisory Council
Which of the following statements with respect to the figure below is INCORRECT?
A. All the possible short-run average cost curves that correspond to the different plant sizes are shown as SAC1 - SAC8. B. If the permanent rate of output increases to Q2 in panel (a), it will be more profitable to have a plant size corresponding to SAC3. C. The long-run average cost curve LAC in panel (b) is sometimes called the planning curve representing the locus (path) of points. D. If the anticipated permanent rate of output per unit time period is Q1 in panel (a), the optimal plant would correspond to SAC1.