The Great Recession started in the:
a. U.S. real goods sector.
b. U.S. real loanable funds market.
c. Foreign exchange market.
d. Global real goods market.
e. All of the above.
.B
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A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. Which statement below is true?
A) Total revenue is $11,500. B) Marginal revenue is $300 when the price is $5. C) Marginal revenue is $100 when the price is $5. D) Marginal revenue is $2100 when the price is $3.
The outcome of the state of nature effects the payoff to the agent under a
A) fixed-fee contract. B) hire contract. C) contingent contract. D) All of the above.
Suppose the government changed the tax laws, with the result that people were encouraged to consume more and save less. Using the loanable funds model, a consequence would be
a. lower interest rates and lower investment. b. lower interest rates and greater investment. c. higher interest rates and lower investment. d. higher interest rates and higher investment.
In the fall of 2008, the Federal Reserve lowered its target for the federal funds rate to nearly 0 percent. What is the name of the group within the Federal Reserve that made this decision?
A. Federal Funds Operating Group B. Federal Advisory Committee C. Federal Deposit Insurance Corporation D. Federal Open Market Committee