When you keep your savings under your mattress, you are using money as a(n)
A. investment good.
B. medium of exchange.
C. unit of account.
D. store of value.
Answer: D
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Company towns are often decried as monopsonists. Why was it unlikely that another employer would move into a company town?
A) The marginal workers available in the company town had low marginal revenue product. B) The existing monopsonist had a first-mover advantage. C) The marginal workers available in the company town would demand a wage higher than that obtained at the existing monopsonist. D) Any of the above.
Use the graph to answer the following question:
Suppose the loanable funds market is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur. After the implementation occurs, the equilibrium in the market would be best represented by
A. point A. B. point B. C. point C. D. point D.
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
A. create unnecessary unemployment. B. shift in labor supply curve leftward. C. decrease the marginal product of labor. D. reduce management's use of featherbedding.
Suppose the actual federal funds rate is equal to the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A. monetary policy will tend to produce that inflation rate. B. monetary policy is expansionary. C. monetary policy is contractionary. D. fiscal policy will result in a balanced budget.