Refer to Figure 11-4. Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in the figure above by the movement from
A) A to D. B) E to B to D. C) A to B to C. D) A to E.
A
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If a bank receives a $5 million discount loan from the Fed, then the bank's reserves will
A) increase by $5 million. B) increase by more than $5 million. C) increase by less than $5 million. D) not change.
Monetary policy loses its effectiveness in all of the following situations EXCEPT
A) when the IS curve is vertical. B) when the LM curve is nearly horizontal. C) when interest rate controlled by the Fed reaches zero. D) when the IS curve is horizontal.
The "beauty premium" can be explained by the fact that
a. marginal productivity in all occupations has a physical dimension. b. in some occupations, physical attractiveness of workers may enhance the value of their marginal product. c. beauty acts as an implicit signal of innate intelligence. d. beautiful people are likely to reflect "good breeding."
Which of the following leads to an increase in net exports in the long run?
a. either a decrease in the budget deficit or imposing an import quota b. a decrease in the budget deficit but not imposing an import quota c. imposing an import quota but not a decrease in the budget deficit d. neither a decrease in the budget deficit nor imposing an import quota