A capital gains tax acts to
A) reduce the interest rate received by loan demanders.
B) increase the interest rate received by loan demanders.
C) increase the interest rate received by loan suppliers.
D) reduce the interest rate received by loan suppliers.
D
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The teal book is the Fed research document containing
A) the forecast of national economic variables for the next three years. B) forecasts of the money aggregates conditional on different monetary policy stances. C) information on the state of the economy in each Federal Reserve district. D) both A and B. E) A, B and C.
A firm experiencing constant economies of scale will have a long-run average cost curve that is:
a. upward sloping b. vertical c. downward sloping d. horizontal
Which of the following forces us to choose among alternatives?
a. Value b. Scarcity c. Rarity d. Market mechanism
All of the following conditions, except one, are satisfied when a perfectly competitive market is in short-run equilibrium. Which is the exception?
a. No firm is suffering an economic loss. b. Each buyer purchases the quantity he wants at the market price. c. Each seller produces the quantity she wants at the market price. d. Suppliers want to sell the same quantity that buyers want to purchase. e. The market coordinates the independent decisions of all the participants.