When we consider our savings, interest rates _________ and inflation rates ___________ the value.
A. increase; decrease
B. decrease; increase
C. increase; increase
D. have no real effect; decrease
A. increase; decrease
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If a person’s income rises and they do not increase their consumption, we can conclude that
a. the good is not inferior. b. their income elasticity of demand is zero. c. the good is not normal. d. no conclusions can be made without knowing the person’s initial income and consumption levels.
XYZ Corporation operates in perfectly competitive input markets and employs labor, capital,land in its production process. What three conditions must be met for the firm to be maximizing profit?
What will be an ideal response?
The Troubled Asset Relief Program (or TARP) called for:
A. reductions in government spending and tax increases. B. the purchase of assets and equity from troubled financial institutions. C. increases in government spending and tax cuts. D. a return to the gold standard.
To decrease the nation's money supply, the Fed can:
A. increase reserve requirements. B. decrease the discount rate. C. decrease reserve requirements. D. buy government securities in the open market.