Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future
a. True
b. False
Indicate whether the statement is true or false
False
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The multiplier effect occurs when:
A. spending by one person generates income for others and causes others to spend more too, increasing the impact of the initial spending on the economy. B. the level of consumer confidence increases more than predicted given a tax cut. C. increased spending by one or more individuals causes others to react and increase their savings. D. None of these is true.
Which of the following is least likely to contribute to the volatility of investment spending?
a. Expectations about business conditions b. Changes in government spending c. Changes in tax laws d. Changes in capacity utilization e. Interest rate fluctuations
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $25 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $1,400. e. Stay at the current output; the firm is losing $1,400.
During the period of October 1979 to October 1982; the FOMC's primary operating target resulted in:
A. the most stable period for the federal funds rate in history. B. the federal funds rate experiencing high volatility. C. the federal funds rate dropping to 2 percent (an all-time low to that date) and not rising above 3 percent. D. reserves being highly volatile.