According to Bernanke's policy guide, a 1/4 point decrease in long-term interest rates results in a
A. $50 billion stimulus for the economy.
B. $50 billion decrease for the economy.
C. $10 billion decrease for the economy.
D. $10 billion stimulus for the economy.
Answer: A
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Mexico has lower wages than the United States. Does this necessarily mean that it will have a comparative advantage in the production of everything compared to the United States?
What will be an ideal response?
The price reflecting the true social opportunity costs of a resource is known as
(a) a shadow price. (b) an equilibrium price. (c) a world price. (d) a price index.
The short-run aggregate supply curve: a. is positively sloped
b. is negatively sloped. c. is a vertical line parallel to the price level axis. d. is a horizontal line parallel to the output axis. e. is a ray from the origin with slope exactly equal to 1.
The payments made to the beneficiaries of the Social Security program are financed by
a. insurance premiums previously paid into the system by the beneficiaries. b. current receipts derived from the Social Security payroll tax. c. income derived from funds that were previously invested in stocks and bonds. d. governmental savings accounts based on the amount of funds the recipient previously paid into the system.