The use of money and credit controls to change macroeconomic activity is known as:
A. Fiscal policy.
B. Monetary policy.
C. Supply-side policy.
D. Eclectic policy.
B. Monetary policy.
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All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. either rise or fall depending on whether the supply or demand for dollars changes more. C. remain fixed. D. rise.
When a firm is on the flat portion of its long-run ATC curve,
A. changing its firm size will not affect its total cost per unit. B. it is capturing the lowest average total costs possible in the industry. C. it is experiencing constant returns to scale. D. All of these are possibly true.
In the short run, why would a firm in a perfectly competitive market shut down production if the prevailing market price falls below the lowest possible average variable cost?
A. At that point (economic) profit is zero. B. Below that point average revenue becomes less than marginal revenue. C. Below that point marginal revenue becomes insufficient to pay for avoidable average variable cost. D. Below that point other firms with similar cost will find it profitable to enter the market and take away demand from the existing firms.
Calculate the monthly payment for a 30-year mortgage, where the amount borrowed is $100,000 and the annual interest rate is 6.0%.
What will be an ideal response?