According to rational expectations,
A) the Fed should focus its policies on interest rates.
B) the Fed should focus its policies on inflation.
C) the Fed should focus its policies on unemployment.
D) the Fed is unable to influence real economic activity.
D
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Due to the law of diminishing marginal utility, _____
a. the first unit of a product offers more satisfaction than the last unit of the same product b. the marginal utility curve is upward sloping c. when marginal utility becomes negative, total utility increases d. marginal utility is zero when total utility is zero e. when marginal utility becomes positive, total utility declines
Demand is said to be ___________ when the quantity demanded is very responsive to changes in price.
a. elastic b. unit elastic c. inelastic d. independent
Suppose you inherit an orange orchard and it generates an annual return of $16,000 . You want to sell it. The interest rate is 8 percent. What should you expect to receive for it?
a. $1,280 b. $2,400 c. 200,000 d. 192,000 e. not enough information is given
The money supply known as M2:
A. includes large denomination time deposits. B. excludes interest-earning checking accounts in savings and loans. C. does not include money market mutual accounts. D. includes savings accounts and small denomination time deposits.