The first paper currency issued by the U.S. government was known as the
a. Federal Reserve note
b. treasury bill
c. greenback
d. pound
e. gold certificate
C
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Figure 7-11
Figure 7-11 shows an average cost curve with points on it that correspond to three quantity levels. Which of the following statements must be wrong?
A. The firm’s technology may show increasing marginal returns as production increases from A to B. B. The firm may have positive fixed costs. C. As production expands from A to B to C, the firm may become increasingly difficult to manage efficiently. D. The firm’s average fixed cost may rise as production increases from B to C.
Empirical evidence suggests that usury laws
A) help poor consumers by lowering the interest rate they pay. B) hurt poor consumers by limiting their ability to borrow. C) keep interest rates low. D) limit the amount borrowed by wealthier consumers.
Which of the following combinations would unambiguously increase the supply of money? a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate. c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities. d. All of the above would produce conflicting effects on the supply of money
What is the marginal rate of substitution, and what role does it play in determining the consumer's optimum choice?