Answer the following statement(s) true (T) or false (F)
1. The Federal Reserve’s policies with respect to the money supply have a direct effect on short-run nominal interest rates.
2. Even when the Fed changes the money supply by changing one of its policy variables, it has little effect on the money market equilibrium.
3. When interest rates on short-term financial assets such as CDs or U.S. Treasury bills are low, the opportunity cost of holding money is high.
4. A decrease in the demand for money will shift the money demand curve to the left.
5. The higher the price level, the lower the demand for money.
1.true
2.false
3.false
4.true
5.false
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________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum
A) Economic efficiency B) Consumer efficiency C) Deadweight efficiency D) Producer efficiency
Efficiency wages are:
A. wages deliberately set above the market rate in order to increase productivity. B. not a cause of unemployment. C. generally a disincentive for an employee to work hard to try to keep their job. D. All of these are true.
The larger the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. smaller; smaller B. smaller; larger C. larger; smaller D. larger; larger
The substantive economic difference between ticket scalping and ticket brokering is that
A. there is no substantive economic difference. B. scalping is immoral and brokering is not. C. brokering is more efficient. D. scalping is more efficient.