When diminishing marginal returns set in,
A) average product is increasing.
B) average variable cost is decreasing.
C) average cost is decreasing.
D) None of above.
D
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If the economy is in a recession, the Fed could:
A. buy bonds through open market operations to increase spending in the economy. B. sell bonds through open market operations to increase spending in the economy. C. increase the discount rate so banks will increase their lending in the economy. D. increase the reserve requirement to increase confidence in the financial system.
1928 and 1929, the federal government’s tightening of the money supply was one of the policies that contributed to the Great Depression.
Answer the following statement(s) true (T) or false (F)
If the dollars held for transactions purposes are, on the average, spent four times a year for final goods and services, then the quantity of money people will wish to hold for transactions purposes is equal to:
A. Four percent of nominal GDP B. 25 percent of nominal GDP C. Nominal GDP multiplied times 4 D. Nominal GDP divided by 25
If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________
A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases