Suppose the Federal Reserve desires to raise the level of planned investment in the economy
It either has to hope that an improvement in business confidence shifts the rate-of-return line to the ________ , or it has to take direct action by ________ the interest rate. A) right, raising
B) right, lowering
C) left, raising
D) left, lowering
B
You might also like to view...
People who attend college for four years in order to equip themselves to earn higher incomes in later life are
A) discounting the future at a higher rate than do people who don't attend college. B) giving up future satisfaction for the sake of current satisfaction. C) ignoring the fact that future income has less value than current income. D) investing in human capital. E) revealing a high rate of time preference.
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . At what price does the firm consider shutting-down in the short run?
a. $25 b. $0 c. $15 d. $10
Because there are low barriers to entry in a monopolistically competitive market
A. they produce a homogeneous product. B. the firms are price takers. C. there is no non-price competition. D. there are many firms in the industry.
A recognition lag is
A. the time it takes to see if that there has been a shock to the economy. B. the time it takes the Fed or Congress to change economic policy. C. the time it takes for a new economic policy to affect behavior in the economy. D. none of the above.