Economists argue that individuals should continue to consume until total benefit equals total cost.
Answer the following statement true (T) or false (F)
False
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A higher bond price indicates a lower cost of new external funds
Indicate whether the statement is true or false
An economy produces 10X, 20Y, and 30Z in a year. Base-year prices for these goods are $1, $2, and $3, respectively. Current-year prices for these goods are $2, $3, and $4, respectively. What is Real GDP?
A) $180 B) $200 C) $140 D) $240 E) none of the above
The Fed's power to set the required reserves of commercial banks:
A. provides a certain source of interest income for commercial banks. B. allows the Fed to control the lending ability of commercial banks and, thereby, control the money supply. C. prevents banks from hoarding too much vault cash. D. prevents commercial banks from earning excess profits.
When an individual is frictionally unemployed, the unemployment arises from
A. a reduction in the overall demand for labor's skills. B. a short-term elimination of jobs because of a slowdown in business activity. C. imperfect labor market information which requires individuals to search for appropriate employment. D. the permanent elimination of jobs because of a change in the structure of the economy.