Suppose that you are the central bank president in a developing country which is predominantly agricultural. During planting season, c the proportion of demand deposits held as cash doubles, but you wish to keep the money supply constant
You may decide to A) reduce e and/or buy securities and/or lower the rediscount rate.
B) increase e and/or buy securities and/or lower the rediscount rate.
C) reduce e and/or sell securities and/or raise the rediscount rate.
D) increase e and/or sell securities and/or raise the rediscount rate.
A
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A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780. B) Cost = $694 C) Cost = $2,071. D) Not enough information is given to answer this problem.
Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50. B) $100. C) $150. D) indeterminate from this information.
Assuming the price level has not changed, how would an increase in the aggregate demand affect real GDP?
A. It decreases. B. It increases. C. It only changes with changes in imports. D. It only changes with changes in exports.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.