If there is a fall in the interest rate, _____.
(A) Businesses will be more likely to expand their facilities.
(B) The unemployment rate will most likely rise.
(C) Consumers will be less likely to buy more expensive items.
(D) There will be a downturn in the economy.
Answer: (A) Businesses will be more likely to expand their facilities.
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Economists consider the economy to be at "full employment" when there is no cyclical unemployment
Indicate whether the statement is true or false
Quotas are most often supported by
A) foreign producers. B) foreign consumers. C) domestic consumers. D) domestic producers.
If a firm experiences constant returns to scale throughout:
a. the long-run average-total-cost curve is negatively sloped. b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion. c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points. d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion. e. the long-run average-total-cost curve is positively sloped.
Excess reserves in a bank are the difference between required reserves and the bank's total net worth.
Answer the following statement true (T) or false (F)