Which of the following is a tool the Fed uses to adjust the quantity of money?
i. The Fed can change the interest rate banks charge for loans to their prime customers.
ii. The Fed can change the discount rate on loans to banks.
iii. The Fed can buy or sell government securities.
A) i only B) ii only C) iii only D) i and iii E) ii and iii
E
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The Ricardo-Barro effect holds that
A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP. B) government budget deficits have no effect on the real interest rate. C) a government budget deficit crowds out private investment. D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
Excluded from the GDP are
a. military services. b. postal services. c. medical services. d. non monetary transactions.
Yuan recently completed his college degree and is entering the labor market for the first time. He has been submitting applications and has been interviewed twice in the last two weeks, but so far has not found a job. Yuan would be classified as
a. frictionally unemployed b. seasonally unemployed c. structurally unemployed d. cyclically unemployed e. not yet in the labor force
Which of the following is true for a profit-maximizing competitive firm in the long run but not a monopolist?
A. MC = MR. B. MC = P. C. AR = P. D. Q > 0.