Which of the following would cause the money supply in the United States to expand?
a. a decrease in reserve requirements
b. an increase in the discount rate
c. the sale of bonds by a Federal Reserve bank
d. an increase in the world supply of gold
A
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If the people of Redland are expecting the central bank to conduct an expansionary monetary policy for several years, how will the long-run real interest rate in Redland be affected?
What will be an ideal response?
The marginal physical product of labor is not
a. the change in output that results from employing an additional worker b. the average productivity of each worker employed c. the marginal contribution to output of each additional worker d. a measure of the contribution of an additional worker to output e. usually increasing at an increasing rate for the first units of labor used in production
A vice president of a company argues that the president of the company should raise workers’ wages if the president wants less absenteeism. The president says that wages probably should be cut so that the workers could not afford to miss so much work
Evaluate the two views using the income and substitution effects in your analysis. Please provide the best answer for the statement.
The price of pens increases from $2 to $2.20. At the same time, the quantity of pens demanded decreases from 100 to 90. Demand for pens is:
A. perfectly inelastic. B. inelastic. C. unit elastic. D. elastic.