The Federal Reserve's long standing tools include
A. changing the reserve ratio.
B. open market operations.
C. changing the level of the targeted interest rate.
D. all of these options are correct.
Answer: D
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The real rate of interest equals 5% and the expected rate of inflation equals 2%. The nominal rate of interest equals
A) 2%. B) 3%. C) 5%. D) 7%.
When the Gizmo Company could sell a gizmo for $10, it produced 2,500 per month. More recently, the price of a gizmo has fallen to $9 and so Gizmo is only producing 2,000 units per month. What is the price elasticity of supply for gizmos?
A) 0.47 B) -0.47 C) -2.11 D) 2.11
In a competitive industry
a. firms produce a product or service with very close substitutes b. the firms products have a very elastic demand c. the firms have many rivals d. all of the above
Progressive income tax structures are based on interpersonal comparisons of burden
Indicate whether the statement is true or false