A major problem in developing an activist policy is
A) uncertainty about the magnitude of the dynamic multiplier.
B) uncertainty about the length and variability of policy lags.
C) uncertainty about the costs of various policies.
D) All of the above are correct.
D
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Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?
What will be an ideal response?
When the Fed raises the discount rate, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans
Expansion of factories, investment in new computers and/or equipment are processes of capital formation.
Answer the following statement true (T) or false (F)
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What will be the value of total revenue when quantity sold equals 2?
A. $7 B. $16 C. $21 D. $14