The Fed sells short-term debt and uses the proceeds to buy long-term debt. This represents:
A. operation twist.
B. standard monetary policy.
C. quantitative easing.
D. precommitment policies.
Answer: A
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The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient level of college education, tuition is
A) $10,000 per year. B) $12,000 per year. C) $14,000 per year. D) $16,000 per year.
Which of the following is a characteristic of a firm in a perfectly competitive market?
A) The firm must lower its price in order to increase quantity demanded. B) The firm cannot make a profit in the short run because it is too small a part of the total market. C) The firm can make a profit in the long run but not in the short run. D) The firm can sell as much as it wants without having to lower its price.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in aggregate demand. B. increase in aggregate demand. C. decrease in short-run aggregate supply. D. increase in short-run aggregate supply.
Suppose Montesia, with a per capita GDP of $100,000 . grows at a rate of 3% per year and Argonia, with a per capita GDP of $2,000 . grows at a rate of 8% per year. The gap between the per capita GDPs of Argonia and Montesia will be _____ after 2 years
a. $103,680 b. $25,897 c. $562,320 d. $35,365