Global money can impact monetary policy
A. Because businesses refuse to borrow and spend when they see that foreign rates are lower than U.S. rates.
B. Very little because businesses are not allowed to borrow from foreign sources.
C. Because lower foreign interest rates reduce consumer confidence in the domestic economy.
D. Because businesses may be able to borrow from foreign banks at cheaper rates.
Answer: D
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The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average fixed cost of producing 25 baseball hats per hour is
A) $1.60 B) $8.00. C) $9.60. D) More information is needed to answer the question.
Which of the following statements is TRUE?
A) investment = disposable income + consumption B) saving = personal income - consumption C) saving = disposable income - consumption D) saving = personal income + consumption
Clorox Bleach and generic brands have the exact same proportions of chlorine and other active ingredients. The reason that people continue to purchase Clorox at twice the price of the generic brand is the
a. price elasticity of demand classifies them as belonging to the same market b. low cross elasticity between Clorox and the generic brand c. high cross elasticity between Clorox and the generic brand d. perceived differences on the part of consumers e. income elasticity of demand is higher for the Clorox brand
Monetarists typically favor strong policy measures to fight recession
a. True b. False Indicate whether the statement is true or false