Who decides what portion of the money supply will be held as currency in circulation?
a. The Treasury
b. The central bank
c. The banking system
d. The non-bank public
e. All the above.
.D
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By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, the inflation rate exceeded 10%. By the end of 1986 the inflation rate had been brought down to 1.9%. Which of the following is true about the Volcker Disinflation?
A) lower inflation resulted from a tightening of monetary policy B) by raising the federal funds rate to over 20%, the Federal Reserve stimulated the economy resulting in lower levels of both inflation and the unemployment rate by the early 1980s C) the unemployment rate was brought down by 1982 but it took longer to reach lower inflation rates D) all of the above E) none of the above
_____ can temporarily create dislocations as displaced workers try to find jobs elsewhere and, at the same time, make existing products more affordable
a. Technological change b. Changes in the rate of interest c. Population changes d. Changes in the price level e. An increase in public expenditure
Protectionism through anti-dumping laws blocks imports that are sold below the cost of production by imposing ___________ that increase the price of these items to reflect their cost of production.
a. quotas b. tariffs c. standards d. sanctions
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade, Silvia can trade all the computers she can produce per year if she specializes in producing computers, for ________ pounds of beef.
A. 3,000 B. 2,000 C. 6,000 D. 4,000