If British government bonds pay a higher interest rate than U.S. government bonds, the dollar should appreciate
a. True
b. False
Indicate whether the statement is true or false
False
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If the economy is operating below its full employment level, the Fed can
A) increase aggregate supply by raising the price level. B) increase aggregate demand by selling bonds and raising interest rates. C) increase aggregate demand by stimulating the demand for money. D) increase aggregate demand by increasing the rate of growth of the money supply.
Your boss explains to you that the total fixed costs of the company are $1 million. He also informs you that each unit of production will cost twenty five cents more with each 100-unit increase
He has asked you to draw the fixed costs of the company with costs on the vertical axis and quantity of goods sold on the horizontal axis. Without drawing a graph tell your boss what the graph will look like using words. What information did your boss give you that you didn't need in order to draw the graph?
Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries
a. True b. False Indicate whether the statement is true or false
Mike's income is $600 per month. He spends all of it on books (B) and CDs (C). Books cost $10 and CDs cost $15. His preferences correspond to the utility function U(B,C) = B × C. For that utility function, the marginal benefit of books is C and the marginal benefit of CDs is B. How many books and how many CDs will he purchase in a month?
A. 20 CDs and 30 Books B. 60 CDs and 10 Books C. 15 CDs and 40 Books D. 30 CDs and 15 Books