To decrease the interest rate the Federal Reserve could
a. buy bonds. The fall in the interest rate would increase investment spending.
b. buy bonds. The fall in the interest rate would decrease investment spending.
c. sell bonds. The fall in the interest rate would increase investment spending
d. sell bonds. The fall in the interest rate would decrease investment spending.
a
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Answer the next question(s) based on the data contained in the following table.Units of LaborTotal ProductProduct Price00$2.201152.002281.803391.604481.405551.206601.10Assume that the firm is hiring labor in a purely competitive market. If the wage rate is $20, how many workers will the firm choose to employ?
A. 5 B. 4 C. 3 D. 2
An interest rate ceiling is likely to cause
a. inflation b. optimal allocation of investment c. increased opportunities for poor people to get loans d. higher savings e. all of the above
Which of the following is not a public good?
a. a coastal lighthouse b. national defense c. a flood-control levee d. the latest Walt Disney movie
According to international trade theory
A. every country has a comparative advantage in something. B. comparative advantage is based on absolute advantage. C. less developed countries cannot trade successfully with developed countries. D. trade is based on absolute advantage.