Using fiscal and monetary policies to deal with a demand shock ______.
a. will prevent the occurrence of a supply shock
b. will create a negative supply shock
c. is more effective than using them to deal with a supply shock
d. is less effective than using them to deal with a supply shock
c. is more effective than using them to deal with a supply shock
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Average total cost is
a. AFC + (TVC/Q) b. TC/Q Incorrect. Please review Top Ten Concept # 6. c. (TFC/Q) + (TVC/Q) d. AFC + AVC e. all of the above
Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping. The price sellers receive after a specific tax is imposed on sellers
A) is less than before the tax. B) is higher than before the tax. C) is unchanged. D) depends on the supply elasticity.
Which of the following will NOT cause a shift in the demand curve for reserves?
A) Business cycles B) A change in the federal funds rate C) Changes in deposit base D) Liquidity shocks
The interest rate on Baa corporate bonds is ________, on average, than interest rates on Treasuries, and the spread between these rates became ________ in the 1970s
A) lower; smaller B) lower; larger C) higher; smaller D) higher; larger