Which of the following will shift the consumption function upward?
What will be an ideal response?
an increase in net wealth
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When the marginal product of labor is a maximum, the average product of labor is ________
A) a maximum B) increasing C) decreasing D) equal to marginal product
Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?
a. Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans. b. A substantial reduction in the velocity of money resulting from the historically low interest rates. c. The Fed's high interest rate policy that reduced private investment. d. Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.
"Duty-free" shops in airports and on international boats sell merchandise that can be brought into the country without which of the following?
(A) Restrictions on resale (B) Political embargoes (C) Import tariffs (D) Restrictions on quantity
Assume that demand decreases by 3 percent, the absolute value of price elasticity of demand is 1.0, and price elasticity of supply is 1.0. What is the percentage price change in this case?
What will be an ideal response?