The strategy of sorting customers into high or low value based on the amount of sales made is known as the
a. Damaged goods strategy
b. The willy-nilly strategy
c. The Metering Strategy
d. All of the above
c
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If the Federal Reserve lowers the Federal funds rate,
A) the price level falls. B) net exports decrease. C) other short-term interest rates rise. D) other short-term interest rates fall. E) Both answers A and C are correct.
Suppose the supply of apartments in Minneapolis is perfectly elastic. The effect of a $100 per month tax on all apartments is that
A) landlords pay none of the tax and there is a surplus of apartments. B) landlords pay all of the tax and suffer all of the deadweight loss. C) landlords pay all of the tax and no changes take place in the quantity of apartments supplied. D) renters pay all of the tax. E) the government collects no tax revenue because the supply is perfectly elastic.
Explain how the AD curve can be derived from the IS-MP model
What will be an ideal response?
Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $0.50 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos
A. lower; decrease B. raise; decrease C. raise; increase D. lower; increase