Inflation is
A) a decline in the total purchasing power of an economy.
B) a decrease in the amount of other goods that a unit of money will purchase.
C) a fall in people's real incomes.
D) an increase in the cost of living.
E) all of the above.
B
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When the Fed wants to undertake open market operations, it
A) buys or sells securities through the trading desk at the New York Federal Reserve Bank. B) can require all commercial banks to buy from or sell to it. C) can require all member banks to buy from or sell to it. D) buys from or sells to the U.S. Treasury.
At the profit-maximizing level of output, the amount by which the firm can mark up price is:
A) inversely related to the price elasticity of demand for item in question. B) directly related to the price elasticity of demand for item in question. C) totally unrelated to the price elasticity of demand for item in question. D) equal to the ratio of the marginal and average costs of production.
Is the United States in danger of a sovereign default because, like countries in the euro zone, it has high current account deficits and levels of public debt?
What will be an ideal response?
Infrastructure investment appears to have little impact on economic growth and development
a. True b. False Indicate whether the statement is true or false