If the Federal Reserve purchases government securities,
A) banks' reserves will increase.
B) the federal funds rate will rise.
C) the discount rate will be forced higher.
D) None of the above answers is correct because none of the effects occur.
A
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The principle economic cost of growth is
A. higher inflation rates. B. higher interest rates. C. investment in stocks and bonds. D. current consumption sacrificed for capital formation.
An optimal consumption bundle will always be on the highest attainable indifference curve for the consumer.
Answer the following statement true (T) or false (F)
Which of the following describes two-part tariff pricing?
A) A firm charges two different prices for the same good. B) An importer has to pay a tax at the nation's borders, and a sales tax when the good is sold. C) A buyer must pay a down payment and monthly payments to buy big-ticket items such as a car, a plasma television, or a suite of furniture. D) A buyer pays an initial price for entrance to the market and an additional fee for each unit of the product purchased.
The production possibilities frontier for a country is usually drawn
a. as a straight line, sloping downward. b. as a straight line, sloping upward. c. bowed outward from the origin. d. bowed inward toward the origin. e. as a dotted line when sloping downward and as a full line when sloping upward.