When the Fed buys bonds in the open market, it pursues an expansionary monetary policy
a. true
b. false
Ans: a. true
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Autonomous expenditure is the component of
A) induced expenditure that changes when in real GDP changes. B) aggregate planned expenditure that changes only when government expenditure on goods and services change. C) aggregate expenditure that does not change when real GDP changes. D) aggregate expenditure that does not change when the interest rate changes. E) aggregate expenditure that changes when real GDP changes.
A falling average cost implies that
a. marginal cost is above average cost b. marginal cost is below average cost c. marginal cost is equal to average cost d. none of the above
Which of the following represents a difficulty related to setting the national poverty line in the United States?
a. Many people around the world are poorer than Americans. b. It is impossible to distinguish the poverty line from the poverty rate. c. Social programs mean that nobody in the United States is living in poverty. d. Median income and cost of living vary in different parts of the country.
You have just won a ticket to see John Mayer in concert this Saturday evening. Nevertheless, it would cost you around $20 in transportation costs to go to the concert since you would have to drive to the neighboring city (where the concert is taking place). Tickets for the concert are selling for $100 in your town. Assuming you only work Monday-Fridays, the cost of going to the concert is:
A. $0 B. $80 C. $120 D. $100