What are the two reasons why the Fed cannot precisely control the money supply?
a. the president and the FOMC
b. laws and businesses
c. banks and laws
d. people and banks
d. people and banks
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All games share three characteristics. Two of these characteristics are rule and strategies. What is the third characteristic called?
A) payoffs B) competition C) collusion D) results
The "invisible hand" using Adam Smith's terminology refers to
a. government control of the market. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. the role of innovation in maintaining a steady rate of growth. e. "behind-the-scenes" policy making to influence how markets allocate scarce resources.
The demand for capital is
a. directly related to the interest rate. b. inversely related to the interest rate. c. unrelated to the interest rate. d. first falls, and then rises, in relation to the interest rate.
With linear demand and supply curves in a market, suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40 . If the tax is increased to $0.50 per unit, the deadweight loss from the new tax will be
a. $200. b. $250. c. $475. d. $625.