If the Federal Reserve wants to increase the availability of money and credit, it can:
A. lower the discount rate.
B. raise the reserve requirements.
C. sell U.S. government bonds to the public.
D. encourage banks to increase their prime lending rate.
Answer: A
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In general, does the demand for labor become more or less elastic as we increase the number of other variable inputs used in a production process?
A) More elastic B) No change in elasticity C) Less elastic D) We cannot answer this question without more information about the other inputs
"As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way.". This statement by a factory supervisor refers to the law of:
a. comparative advantage. b. demand. c. supply. d. increasing returns to scale. e. diminishing marginal returns.
Household saving is the defined as consumption minus disposable income
a. True b. False
During periods of deflation, the nominal interest rate will be a. higher than the real interest rate
b. lower than the real interest rate. c. the same as the real interest rate. d. possibly higher, lower, or the same as the real interest rate. The answer depends on how much deflation there is in the economy.