If the Federal Reserve lowers the Federal funds rate,
A) the price level falls.
B) net exports decrease.
C) other short-term interest rates rise.
D) other short-term interest rates fall.
E) Both answers A and C are correct.
D
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The most important determinant of any multiplier in the Keynesian model is
a. the level of planned investment. b. the level of unemployment. c. the marginal propensity to consume. d. the level of excess demand.
Over time, regulatory machinery may shift toward the special interests of producers, who, in effect, "capture" the regulating agency
a. True b. False
Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets that can be produced, when all resources are fully employed. Production PossibilitiesGood A B C D E
Based on the above information
A. there is no trade-off between smartphones and tablets. B. the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets. C. the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones. D. the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets.
Sources of market failure include
A. imperfect information. B. inflation. C. perfect competition. D. private goods.