The pitfalls of a strict money supply rule can be avoided if the Fed:
A. targets velocity growth.
B. targets nominal GDP growth.
C. targets money supply growth.
D. targets real GDP growth.
Ans: B. targets nominal GDP growth.
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.
A. 2.5GHz B. 2.0GHz C. 3.0GHz D. 4.0GHz
Some economists have argued that certain characteristics of the delivery of health care justify government intervention. One of these characteristics is
A) health care is nonrivalrous and nonexcludable. B) health care generates negative externalities. C) health care is a public good. D) health care generates positive externalities.
A management plan to buy back corporate stock in the event of a threatened takeover is one form of shark repellent
Indicate whether the statement is true or false
The balance of payments is
a. the equilibrium result when two countries achieve purchasing power parity. b. an account that records changes in exchange rates between two countries. c. an account that records all economic transactions between a country and all other countries, usually within a year. d. all of the above. e. none of the above.