If the Fed has announced that it plans on lowering the interest rate it will
A) engage in contractionary open market operations, thereby increasing the money supply.
B) engage in contractionary open market operations, thereby decreasing the money supply.
C) engage in expansionary open market operations, thereby decreasing the money supply.
D) engage in expansionary open market operations, thereby increasing the money supply.
D
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In the range of disposable income where the consumption function lies above the 45° line,
A) disposable income is negative. B) saving is negative. C) disposable income equals planned expenditures. D) induced consumption is zero. E) saving is positive.
Why is the principal-agent problem less likely when getting a haircut than when getting a car repaired?
a. Haircuts are less expensive than car repairs. b. There are no hidden actions when getting your hair cut. c. There are no hidden actions when getting your car repaired. d. Auto mechanics are less honest than hair stylists. e. There is no principal-agent relationship in car repair.
The Darity-Myers thesis states that
A. he heritage of slavery is largely to blame for black poverty. B. welfare dependency creates a culture of poverty. C. black men have become less useful in the emerging economic order and have become marginalized. D. the root problem of black poverty is the high pregnancy rate of unmarried teenage girls.
If an industry has a Herfindahl index of 3,000, the contestable market model probably would predict that the industry would be more likely to have a:
A. competitive price. B. monopolistic price if there are no barriers to entry. C. competitive price if there are no barriers to entry. D. monopolistic price.