The Fed can reduce the federal funds rate by
a. decreasing the money supply. To decrease the money supply it could sell bonds.
b. decreasing the money supply. To decrease the money supply it could buy bonds.
c. increasing the money supply. To increase the money supply it could sell bonds.
d. increasing the money supply. To increase the money supply it could buy bonds.
d
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If a good is quasilinear, its own-price demand curve is vertical.
Answer the following statement true (T) or false (F)
The real wage rate will fall if the
A) labor supply curve shifts rightward and the labor demand curve does not shift. B) labor supply curve shifts leftward and the labor demand curve does not shift. C) labor demand curve shifts rightward and the labor supply curve does not shift. D) labor demand curve shifts rightward more than the labor supply curve shifts rightward.
What relationship is shown by a supply curve?
What will be an ideal response?
If a good is labor intensive it means that the good is produced
A) using relatively more labor than goods that are not labor intensive. B) using labor as the only input. C) using more labor per unit of output than goods that are not labor intensive. D) using labor such that the total cost of labor is greater than the total cost of capital. E) using labor such that the cost of labor is more than 50% of total cost.