Which of the following concerns is consistent with the Fed's policy initiative outlined in the In the News article titled " U.S. Federal Reserve Cuts Interest Rates to Historic Low"?
A. Concern about the lower interest rates harming the economy.
B. Concern about inflationary pressures on the economy.
C. Concern about mounting unemployment.
D. Concern about desired spending exceeding current output.
Answer: C
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Jane's utility function is represented as: U = F0.5 C0.5, F is quantity of food and C is quantity of clothing. If her budget constraint is represented as: 120 = 2F + C, her optimal bundle of consumption should be
A) (40F, 40C). B) (20F, 60C). C) (50F, 50C). D) (45F, 20C).
Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate?
A) an increase in the quantity of rental housing supplied B) a decrease in the quantity of rental housing demanded C) a black market in rental housing D) a surplus of rental housing
Which one of the following statements about public debt is most accurate? a. Poor people are burdened by the debt because they pay more in taxes than they receive in interest
b. Poor people gain from the debt because they pay less in taxes than they receive in interest. c. Wealthy people are burdened by the debt because they pay more in taxes than they receive in interest. d. Wealthy people gain from the debt because they pay less in taxes than they receive in interest. e. The debt affects the poor and rich people equally.
Which of the following is a question answered with normative economic reasoning?
A. If the college offers free parking for students, will more students drive to campus? B. Should the college cut tuition to stimulate enrollment? C. If the college provided more financial aid assistance, would more students benefit? D. If the college increased tuition, would class size decline?