The Fed now targets the federal funds rate rather than the money supply.
Answer the following statement true (T) or false (F)
True
It is much easier for the Fed to target the federal funds rate in an increasingly globalized economy.
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A legal limit on the quantity of a good that may be imported is called a(n) ________.
A. tariff B. import tax C. trade limit D. quota
Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is
A. $7,150. B. -$50. C. $150. D. $50.
Adverse supply shocks can cause a recession with increasing price level.
Answer the following statement true (T) or false (F)
In the above figure, at an income level of Y3 and planned expenditures of (C + I)1
A. the economy is in equilibrium. B. planned saving exceeds planned investment. C. the quantity of aggregate demand exceeds real Gross Domestic Product (GDP). D. there is full employment.