Suppose that I rose by $50 billion with a multiplier of 6. What happened to GDP?
What will be an ideal response?
It rose by $300 billion.
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A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?
A) medium of exchange B) standard of deferred payment C) store of value D) unit of account
The Federal Reserve changes the risk-free interest rate most directly:
A. by changing the reserve requirement. B. by changing the federal funds rate. C. by changing the discount rate. D. with open-market operations.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
Total expenditure by a buyer is equal to the
A. slope at any point along the demand curve. B. price times quantity demanded at any point along the demand curve. C. elasticity times price at any point along the demand curve. D. elasticity times quantity demanded at any point along the demand curve.