Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 
Refer to Table 8.1. In the short run, if the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and firms attempt to minimize costs, then this firm's total cost of producing one unit of output is
A. $100.
B. $120.
C. $220.
D. indeterminate from this information.
Answer: D
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A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 2.5%. How much money will the bondholder receive in the sixth year?
A. $1,025. B. $1,250. C. $1,000. D. $25. E. $975.
In the short run in the Keynesian model, an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________
A) rise; rise B) fall; rise C) rise; fall D) fall; fall
Suppose the federal budget surplus for the year was $350 billion and the economy was in an economic expansion
If the economy had been at potential GDP, it is estimated that tax revenue would have been $140 billion lower and government spending on transfer payments would have been $50 billion higher. Using these estimates, the cyclically adjusted budget A) deficit was $440 billion. B) deficit was $260 billion. C) surplus was $160 billion. D) surplus was $540 billion.
Regulation Q
A) prohibited interstate banking. B) placed ceilings on allowable interest rates on time and savings deposits. C) required all banks to hold reserves against demand deposits. D) broadened the basis on which the Fed could make discount loans.