When the Fed wants US interest rates to decrease, it will usually increase the discount rate
a. true
b. false
Answer: b. false
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Ron spends $150 on movie tickets and pizza. The price of a pizza is $10 and a movie ticket is $7.50
With the quantity of movies measured along the vertical axis, the slope of Ron's budget line (with movies on the vertical axis) is ________ per pizza A) 1.33 movies B) -1.33 movies C) 0.75 of a movie D) -0.75 of a movie
The idea that expectations can affect the velocity of money is a critical factor in understanding
a. the Keynesian view of the quantity theory of money b. the classical view of the quantity theory of money c. the monetarist view of the quantity theory of money d. why GDP must increase when the price level increases e. why price changes cause inflation
The incidence of a tax explains what group pays the burden of a tax.
Answer the following statement true (T) or false (F)
An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is:
A. the cost of bait and any other monetary expenses. B. zero, because the person doesn't have a job. C. the cost of bait, any other monetary expenses, and the value of the individual's wages while he was working. D. the cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time.