A central bank can control the real interest rate precisely, so long as ________ remains constant
A) the nominal interest rate
B) monetary policy
C) expected inflation
D) all of the above
E) none of the above
C
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At the break-even point for the consumption function
A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l.
Refer to the information below. If the firms compete, what is the equilibrium quantity in the market?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) 45,000 B) 500,000 C) 450,000 D) 50,000
The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
a. Selling government securities and raising the discount rate b. Selling government securities and lowering the discount rate c. Buying government securities and lowering the discount rate d. Buying government securities and raising the reserve ratio
Based on the graph below, what is the difference between the purely competitive equilibrium level of output and the pure monopoly equilibrium level of output?
A. 20
B. 70
C. 90
D. 110