During the 1990s, interest rates became ________ volatile than in the 1980s because the Fed used open market operations to ________ shifts in the IS and LM curves
A) more, reinforce
B) less, offset
C) more, offset
D) less, reinforce
B
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Figure 10-18
Given the shift of the aggregate demand curve from AD1 to AD2 in , the real GDP and price level (CPI) in long-run equilibrium will be
a.
$10 billion and 200.
b.
$4 billion and 150.
c.
$10 billion and 150.
d.
$10 billion and 100.
If marginal utility is zero
A) a rational consumer will consume more units next time. B) a rational consumer will consume fewer units next time. C) a rational consumer will not consume additional units. D) a rational consumer will consume more units if the price is zero.
From the standpoint of the economy as a whole, the role of
a. the interest rate is to make sure that the price of bonds increases over time. b. diversification is to eliminate market risk. c. insurance is to reduce the risks inherent in life. d. insurance is to spread risks around more efficiently.
The variety that monopolistic competition provides is paid primarily by
A. all consumers whether they desire variety or not. B. the producer whose ability to pass on costs is limited by his demand curve. C. those customers who desire the variety. D. no one because variety costs no more to produce than uniform products cost to produce.