In the short run, marginal cost is increasing when
A) MPL is decreasing.
B) MPL is increasing.
C) APL is increasing.
D) APL is decreasing.
A
You might also like to view...
Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 10%. All figures are in billions.Assets (billions of dollars)Liabilities & Net Worth (billions of dollars)Reserves$60Checkable deposits$600Securities140Stock shares260Loans260 Property400 Suppose the Fed wants to reduce the money supply by $400 billion to drive up interest rates and dampen inflation. Assuming that the money multiplier is operating to full effect, to accomplish the desired reduction, the Fed could ________.
A. sell $40 billion of U.S. securities to the banks B. buy $40 billion of U.S. securities from the banks C. buy $20 billion of U.S. securities from the banks D. sell $20 billion of U.S. securities to the banks
GDP is most often discussed using _______ figures, although it is typically calculated _______.
A. annual; quarterly B. annual; monthly C. quarterly; monthly D. quarterly; annually
A positive temporary supply side shock will:
A. increase the price level in the long run. B. decrease the price level in the long run. C. increase the level of potential output in the long run. D. have no effect in the long run.
In times of recession, to encourage banks to provide loans in the economy, the Fed will
a. raise the legal reserve requirement b. raise the margin requirement c. cut taxes and increases government spending d. lower the discount rate e. buy stock on the federal funds market