The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to
A) lower the long term interest rates.
B) lower the short term interest rates.
C) increase the long term interest rates.
D) increase the short term interest rates.
A
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Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are markets with imperfect competition.
If a perfectly competitive firm is producing at a quantity at which MC < AVC, it cannot be maximizing profit in the short run
a. True b. False
Monetary policy
a. must be described in terms of interest-rate targets. b. must be described in terms of money-supply targets. c. can be described either in terms of the money supply or in terms of the interest rate. d. cannot be accurately described in terms of the interest rate or in terms of the money supply.
The relationship between the level of prices and total quantity of goods and services producers are willing to supply is represented by the:
A. aggregate demand curve. B. aggregate supply curve. C. sticky price curve. D. GDP multiplier.