If the Fed conducts an open market purchase of bonds, which of the following will happen?
a. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift leftward.
b. The interest rate will increase, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward.
c. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward.
d. The interest rate will decrease, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift rightward.
e. The interest rate will increase, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift leftward.
C
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Consider the monopsony in the above figure. The monopsony will pay a hourly wage rate equal to
A) $10. B) $15. C) $20. D) None of the above answers is correct.
Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP
a. True b. False Indicate whether the statement is true or false
Refer to the following figure. The price of capital is $50 per unit:
Which of the following combinations of capital and labor lies on the expansion path?
A. 130K, 175L B. 130K, 200L C. 110K, 120L D. 60K, 120L
Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. In other words, your choices will account for the effects of:
a. marginal benefits and marginal costs of each good considered b. attainable and unattainable combinations of the goods under consideration c. the available supply of each good considered d. scarce resources in the production of each good consideration