Which of the following statements is true about Say's law?
a. It states that supply creates its own demand.
b. It states that demand creates its own supply.
c. It states that total output will always exceed total spending.
d. It states that consumption spending is the most volatile component of aggregate expenditures.
e. It is a major proposition of the Keynesian model.
a
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Federal Reserve regulations apply
a. to all banks in the United States b. only to member banks c. only to private commercial banks d. only to national banks e. only to state banks
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
In the above figure, if this firm produces output level Q2, it has average variable costs of
A. OD. B. OF. C. OC. D. OE.
To say that the Federal Reserve Banks are quasi-public banks means that:
A. they are privately owned but managed in the public interest. B. they deal only with banks of foreign nations and do not have direct business contact with U.S. banks. C. they deal only with commercial banks, and not the public. D. they are publicly owned but privately managed.