To lower interest rates on residential mortgages to stimulate the housing market, the Fed extended its open market operations to purchase
A) mortgage-backed securities.
B) commercial papers.
C) long-term Treasuries.
D) Treasury bills and Treasury notes.
A
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Intertemporal substitution dictates that
a. people will work less in periods of high productivity. b. people will spend more in periods of high productivity. c. people will work more in periods of high productivity. d. people will spend less in periods of high productivity.
Refer to the graph below. Suppose that its shows the S and D graphs in a market where the product has all the characteristics of a public good. In this case, the government should use its coercive power to make:
A. The supply curve shift to the left
B. The supply curve shift to the right
C. The demand curve shift to the left
D. The demand curve shift to the right
When exchange rates are ________, we say that the country's exchange rate is fixed
A) determined in the market B) relatively stable C) set by a country's central bank D) determined by supply and demand
"There is no such thing as a free lunch." This statement best reflects the fact that
a. consumers are unwilling to pay for a good unless it provides them with value. b. an opportunity cost is always present when scarce resources are used to produce a good. c. it generally requires enormous effort to search out the best place to eat lunch. d. the value of a good to consumers will decrease as they have more of it.