When there are few substitutes available for a good, demand tends to be relatively inelastic
Indicate whether the statement is true or false
TRUE
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Average variable cost is
a. total cost minus fixed cost b. total variable cost divided by the quantity of output c. total cost plus marginal cost d. total cost per unit of output e. output divided by the quantity of inputs used
Assuming an increase in money demand, then if the Federal Reserve
a. can keep the interest rate unchanged assuming that it changes the monetary base by the appropriate amount. b. would have to aim below their previous money stock target. c. would not have to cut taxes to keep output from falling. d. All of the above e. None of the above
While equity funds are mostly made up of short-term U.S. government securities, money market funds are made up of bonds
a. True b. False Indicate whether the statement is true or false
The national debt refers to the total amount that the government:
a. has borrowed over time. b. borrowed last year. c. plans to spend this fiscal year. d. has spent over time.