Leakages cause diversion of income from the domestic spending stream
a. True
b. False
Indicate whether the statement is true or false
True
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The discount rate is kept ________ the federal funds rate because the Fed prefers that ________
A) below; banks borrow reserves from each other B) below; banks borrow reserves from the Fed C) above; banks borrow reserves from each other D) above; banks borrow reserves from the Fed
In 1995, the Boskin commission identified which of the following problems with the computation of the CPI?
A) it does not account for the fact that consumers can substitute away from products as they get more expensive B) an increase in price could be the result of quality improvements rather than an increase in the cost of living C) it often does not reflect decreases in the cost of living that occur when new goods are introduced D) all of the above E) none of the above
The euro coins can be spent only in the countries where they are made, because one side of the coin has an image that is individualized for each of the countries of the European Union
a. True b. False Indicate whether the statement is true or false
The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are
A) $0. B) $3,000. C) $5,000. D) indeterminate because the firm's output level is not known.