The Phillips curve represents a relationship between:
A. inflation and real income.
B. inflation and unemployment.
C. money supply and interest rates.
D. money supply and unemployment.
Answer: B
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Using the data in the above table, the average total cost of producing 16 units per day is
A) $1.25. B) $6.25. C) $7.00 D) $7.50.
The U.S. Federal Reserve
A) has complete independence from the U.S. government. B) acts within the boundaries established by Congress and the president, but has flexibility in meeting the goals of monetary policy. C) is a government agency run by the Treasury Department and under the strict control of Congress. D) is run by elected officials but is only subject to oversight by the U.S. president.
A measure of the responsiveness of the demand for one good to the percentage change in the price of another good is
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.
Lines of credit provided by financial intermediaries:
A. are pre-approved loans that can increase liquidity and lowering transaction costs. B. decrease liquidity for customers but increase income for the intermediary. C. are costly for intermediaries to provide so are only available to large commercial customers. D. require deposits in the intermediary that equal or exceed the amount of the line of credit.