The idea of the life-cycle theory of consumption is that people make lifetime consumption plans.
Answer the following statement true (T) or false (F)
True
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As a competitive firm hires increasing amounts of labor, the value of marginal product of labor
A) decreases. B) increases. C) remains constant. D) decreases then increases.
Drug-interdiction policies that reduce the supply of illegal drugs
a. are likely to be more effective in the short run than in the long run. b. are proven to reduce illegal drug use faster than drug-education programs designed to reduce demand. c. may increase drug-related crimes. d. All of the above are correct.
Which of the following statements is most correct if the Fed sees no need to engage in expansionary monetary policy?
A. It will be impossible for the Fed to shrink its balance sheet. B. Eventually, the Fed will shrink its balance sheet by letting securities it holds expire. C. The Fed is likely to increase the size of its balance sheet. D. The Fed will likely shrink its balance sheet rapidly.
Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds