At a price level of 100, John has savings equal to $20,000. If the price level increases to 130, the buying power of John's savings is approximately
A) $26,000. B) $12,780. C) $30,000. D) $20,000. E) $15,400.
E
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________ refers to an action that an individual with private information takes in order to convince others about his information
A) Sniping B) Signaling C) Hedging D) Speculating
Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
All of the following, except one, are included in the profit earned by a firm's owners. Which is the exception?
a. the reward for developing new products b. the reward for moving an established business into new geographic markets c. the reward for risk taking d. salaries that compensate for the owners' time e. dividend payments to the stockholders
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.