A situation in which the Fed's target interest rate has fallen as far as it can fall is sometimes described as a
a. liquidity preference.
b. liquidity trap.
c. open-market trap.
d. interest-rate contraction.
b
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If 50 percent of the population in a country is employed and average labor productivity equals $30,000, then real GDP per person equals:
A. $50,000. B. $30,000. C. $15,000. D. $60,000.
In the above, which figure(s) has (have) at least one point at which the slope equals zero?
A) Figure B only B) Figures A and C C) Figure D only D) Figures A, C, and D E) Figures A and D
The situation in the figure above creates a barrier to entry for a second firm because
i. a second firm that produced as many kilowatt-hours as the first firm would see the market price fall beneath its cost and would incur an economic loss. ii. a second firm that produced fewer kilowatt-hours than the first firm would have to charge a higher price and would not gain many customers. iii. the first firm's average total cost curve indicates it has been given a patent for the product. A) i only B) ii only C) iii only D) i and ii E) i and iii
When a Pigouvian tax is imposed, ________
A) the marginal private cost curve shifts upward B) the demand curve shifts rightward C) the marginal social cost curve shifts downward D) the marginal social benefit curve shifts downward