To signal its intention to restrict credit availability, the Federal Reserve could
A. reduce the discount rate by ¼ of a percentage point.
B. push the discount rate below the Federal Funds rate.
C. keep the discount rate equal to the Federal Funds rate.
D. increase the discount rate.
Answer: A
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In which of the following product markets are we likely to observe the largest amount of advertising?
a. markets with highly differentiated products b. perfectly competitive markets c. markets in which industrial products are sold d. markets in which there is very little difference between different firms' products
The economy is:
A. complex, and it operates under uncertain rules. B. complex, though it operates under clear rules. C. simple, and it operates under clear rules. D. simple, though it operates under uncertain rules.
The age-earning cycle shows declining income as a person approaches retirement age because
A. companies add-in Social Security payments as a supplement. B. companies choose to promote these workers faster. C. worker and hours worked diminish. D. worker productivity is increasing rapidly.
Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right. B) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. C) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. D) The aggregate demand curve would have shifted to the left.