Imagine that you are a member of the Board of Governors of the Federal Reserve. If the economy is experiencing rapid inflation, what actions might you advocate? Why?
Actions that would help curb inflation would include selling bonds on the open market and, perhaps,
raising the discount rate or the legal reserve requirement. These actions take excess reserves out of banks'
hands and prevent them from making loans. This takes pressure off spending and helps prevent further
price level increases.
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In the United States in 2012, the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases) was highest for people in the age range of ________, and the percentage of people with diabetes was highest for people in the age range of ________.
A) 65 and older; 20-44 B) 65 and older; 65 and older C) 20-44; 45-64 D) 45-64; 65 and older
If marginal cost is increasing, average total cost must be increasing
Indicate whether the statement is true or false
A positive externality
a. causes the product to be overproduced. b. provides an additional benefit to market participants. c. benefits consumers because it results in a lower equilibrium price. d. is a benefit to a market bystander.
According to the circular-flow diagram, GDP
a. can be computed as payments firms make to factors of production plus revenues they receive from the sales of goods and services. b. can be computed as the revenue firms receive from the sales of goods and services minus the payments they make to factors of production. c. can be computed as either the revenue firms receive from the sales of goods and services or the payments firms make to factors of production. d. can be computed as the payments firms make to factors of production, but not as revenues they receive from the sales of goods and services.