The federal government facilitated suburbanization by providing _______________ and ___________________.
Fill in the blank(s) with the appropriate word(s).
low-cost, easy-term mortgages; highways
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The Fed raises the federal funds rate. Which of the following changes occurs most rapidly?
A) Exchange rate rises. B) Consumption expenditure decreases. C) Aggregate demand decreases. D) Real GDP growth decreases. E) Inflation rate decreases.
Water is essential to life while diamonds, while beautiful, are not essential to life. In the marketplace, diamonds are very expensive while water is relatively cheap. We can resolve this paradox by focusing on
a. total utility rather than average utility b. average utility rather than marginal utility c. marginal utility rather than total utility d. total utility rather than marginal utility e. average utility rather than total utility
If interest rates in the United States are higher than interest rates in Europe, what is most likely to happen?
a. Supply of dollars will increase, causing appreciation of the dollar. b. Supply of euros will increase, causing appreciation of the euro. c. Demand for dollars will increase causing appreciation of the dollar. d. Demand for dollars will decrease, causing depreciation of the dollar.
The decreasing portion of a firm's long run average cost curve is attributable to:
A. diminishing returns to scale. B. increasing marginal cost. C. economies of scale. D. diseconomies of scale.