Which of the books used at the FOMC meetings contains a discussion of financial markets and current policy options?
A. The Beigebook
B. Both the Beigebook and Greenbooks
C. The Tealbook
D. The Greenbook
Answer: C
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During October and November 2008, gasoline prices were falling dramatically making travel by car less expensive but air travel prices were as high as ever
If travel by car is less expensive, and income remains the same, describe the substitution and income effects that occur for travelling by car. A) If travelling by car is a normal good, the substitution effect would cause an increase and the income effect would cause a decrease in travelling by car. B) If travelling by car is a normal good, both the substitution and income effects would be cause an increase in travelling by car. C) If travelling by car is a normal good, the substitution effect would cause a decrease and the income effect would cause an increase in travelling by car. D) If travelling by car is a normal good, both the substitution and income effects would cause a decrease in travelling by car.
Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is third most unequally distributed in
A) Country A. B) Country B. C) Country C. D) Country D.
In the U.S., over the past forty years,
A) exports as a percentage of GDP have increased, while imports has a percentage of GDP have decreased. B) exports as a percentage of GDP have decreased, while imports has a percentage of GDP have increased. C) both exports and imports as a percentage of GDP have decreased. D) both exports and imports as a percentage of GDP have increased. E) both exports and imports as a percentage of GDP have remained constant.
If more foreign steel plants relocate to the United States, we would expect
A) the U.S. supply curve for steel to shift to the right. B) the U.S. supply curve for steel would shift to the left. C) that the U.S. steel market would not respond. D) that U.S. steel demand might change, but U.S. steel supply would remain the same.