Changes in the federal funds rate usually result in
A) changes in both short-term and long-term interest rates with more of an effect on short-term interest rates.
B) changes in both short-term and long-term interest rates with equal effect on both.
C) changes in both short-term and long-term interest rates with more of an effect on long-term interest rates.
D) no change in either short-term or long-term interest rates.
A
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An increase in income, holding prices constant, can be represented as:
A) a change in the slope of the budget line. B) a parallel outward shift in the budget line. C) an outward shift in the budget line with its slope becoming flatter. D) a parallel inward shift in the budget line.
If investment is not sensitive to changes in the interest rate, then changes in the money supply: a. will have no effect on interest rates
b. will have no impact on the quantity of money demanded. c. will have no effect on the aggregate demand of an economy. d. will have a major impact on the aggregate demand of an economy. e. will have a major impact on the price level in an economy.
Anthony decides to open a café in his garage. He takes the help of his friend, Tess, who agrees to wait on customers for the initial few months. Which of the following is an example of an explicit cost that Anthony could possibly incur?
a. The salary that Anthony could have received by working at a bake house b. The salary that Tess could have received by working at any other café c. The price of ingredients required by Anthony d. The payment that Anthony could have received by renting out his garage to a start up
Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.