Explain what types of policies a central bank can implement to raise the interest rate
What will be an ideal response?
Central banks have two options to raise the interest rate: a central bank sale of bonds or a n increase in the required reserve ratio. Both policies result in a decrease in the money supply and an increase in the interest rate.
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The increased willingness of women to enter the workforce has most likely lead to
a. an increase in labor demand, higher real wages, and a lower price level. b. an increase in labor supply, higher real wages, and a lower price level. c. an increase in labor supply, higher real wages, and a higher price level. d. a decrease in labor demand, lower real wages, and no effect on the price level. e. none of the above.
A local restaurant increases the prices on its burgers as soon as it begins a promotional campaign. Which of the following is most likely to be true?
a. The promotional campaign featured how much better their burgers are b. The promotional campaign focused on the value per dollar c. The promotional campaign made demand more elastic d. All of the above
Under which of the following circumstances is the principal-agent problem likely to be most serious
a. Between general practitioners and patients. b. Between surgeons and patients. c. Between hospitals and nurses. d. Between dentists and physicians. e. Between physicians and lawyers.
Jordan has the following assets and liabilities:Two cars$10,000House$200,000Mortgage$100,000Cash$1,000Car loans$3,000Checking account balance$2,000Credit card balance$1,000 What is the value of Jordan's liabilities?
A. $213,000 B. $100,000 C. $104,000 D. $317,000