Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
a. Yes, through its ability to affect the money supply.
b. Yes, through its ability to change tax levels.
c. No, the Fed is forbidden by the Constitution from intervening in the economy.
d. No, the Fed almost always follows a passive monetary policy.
a
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Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. scrimping on the tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date
Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person you should decide to go to the movie
A. only if it brings you more pleasure than the cost of the tickets. B. always, since the tickets were free. C. only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game. D. only if you would gain some pleasure from it.
Refer to the figure below. Assume the market is originally at point W. Movement to point Z is a combination of:
A. an increase in demand and an increase in quantity supplied. B. an increase in supply and an increase in demand. C. a decrease in supply and an increase in quantity demanded. D. an increase in supply and an increase in quantity demanded.
Stephen R. Covey's book The 7 Habits of Highly Effective People has as the final 7th Habit the following:
a. Sharpen the saw b. Be proactive c. Synergize d. Think win-win