Which of the following is an example of an expansionary monetary policy action?
A. Raising the discount rate
B. Selling bonds
C. Reducing the reserve requirement
D. Lowering the prime rate
Answer: C
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Refer to Figure 5-3. The efficient quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
Which of the following individuals would be most negatively affected by anticipated inflation?
A) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses B) a full-time employee at a pizza parlor who makes more than the minimum wage C) a retired railroad engineer who receives a fixed income payment every month D) a union contractor whose pay is adjusted based on changes in the CPI
Dating the start of falling labor productivity growth in 1973 is very suggestive of this explanation for it: ________ energy prices and ________ use of energy per worker
A) higher, decreased B) higher, increased C) lower, decreased D) lower, increased
In the Cournot model, the output that a firm chooses to produce increases as
A) the total output of other firms increases. B) the number of firms in the market increases. C) the number of firms in the market decreases. D) its marginal cost increases.