The supply curve of a depletable natural resource is usually
a. downward sloping because the resource runs out over time.
b. upward sloping because more of the resource can be profitably extracted at higher prices.
c. upward sloping because the price of the resource rises over time.
d. vertical because the supply of the resource is fixed.
b
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In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in nominal output?
A) -1% B) between 0 and 1% C) 1% D) It cannot be done.
The position of a country's production possibilities curve in the future will be affected by: a. the rate of technological progress
b. discoveries of supplies of natural resources. c. the growth rate of productivity in the country. d. all of the above.
Velocity can be defined as:
a. the turnover rate of money b. the speed at which economic activity takes place. c. the speed at which multiplier effect takes place. d. the speed at which tax cuts are spent.
Which of the following statements is most correct?
A. The discount rate is the primary policy tool of the FOMC. B. The difference between the target and actual federal funds rate is the dealer's spread. C. The FOMC sets the target federal funds rate range. D. The FOMC sets the federal funds rate.