When the Fed lowers the federal funds rate, which of the following economic variables responds most rapidly?
A) other short-term interest rates
B) consumption expenditure
C) the supply of loanable funds
D) the long-term real interest rate
E) the inflation rate
A
You might also like to view...
Suppose the cost curves in the above figure apply to all firms in the market. Then, if the initial price is P1, in the long run the market
A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease.
If Oscar's company has a lease that runs until six months from now, which of the following would be true?
a. His rent payments would be considered fixed costs and anything longer than six months would be considered the short run. b. His rent payments would be considered fixed costs and anything less than six months would be considered the short run. c. His rent payments would be considered variable costs and anything longer than six months would be considered the short run. d. His rent payments would be considered variable costs and anything less than six months would be considered the short run.
A decrease in labor productivity will increase marginal cost
Indicate whether the statement is true or false
In output markets, the elasticity of supply tends to be
A. positive. B. negative. C. zero. D. decreasing at an increasing rate.