In its original role as "lender of last resort" the Fed was supposed to
a. lend money to people in regions without banks.
b. lend money to developing nations.
c. keep the money supply from drying up during financial panics.
d. provide mortgage lending to returning soldiers.
c
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According to the new classical economics, predictable changes in aggregate demand
a. affect the level of real output. b. will not affect the level of real output. c. may or may not affect the level of real output. d. None of the above
The right decision about what to produce and who to trade with happens:
A. almost entirely by market decisions automatically. B. when governments publish comparative advantage numbers. C. only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option. D. governments from different countries get together to decide on trade.
Every value in a payoff matrix represents the:
A. gain or loss of a decision for each player given the decisions of other players. B. gains and losses of decisions for each player regardless of the decisions of other players. C. best possible outcomes of various players in a game. D. worst possible outcomes of various players in a game.
A firm encountering economies of scale over some range of output will have a:
A. Rising long-run average cost curve B. Falling long-run average cost curve C. Constant long-run average cost curve D. Rising, then falling, then rising long-run average cost curve