Interest rates are higher the
A) shorter the duration of the loan.
B) greater the risk.
C) larger the amount of the loan, holding other things constant.
D) lower the inflation rate.
B
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If the Fed wants to increase bank reserves, it can:
A. Buy bonds. B. Raise the discount rate. C. Raise the reserve requirement. D. Sell bonds.
Fiscal policy is typically:
A. extremely flexible provided policy lags are short. B. extremely flexible because most government spending is discretionary. C. difficult to implement quickly. D. flexible despite the presence of implementation problems.
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, diminishing marginal utility occurs
A. With the first and third units only. B. With the second and fourth units only. C. With all units after the first. D. Only with the second unit.
If ________, a firm would either operate or shut down in the short run and contract in the long run.
A. AVC > ATC B. TR > TC C. AFC > AVC D. TC > TR