A sign that the Federal Reserve is moving to raise interest rates would be
A) an increase in bank reserves.
B) large purchases of Treasury securities by the Federal Reserve.
C) a widening gap between the Treasury bill yield and the discount rate.
D) a narrowing gap between the Treasury bill yield and the discount rate.
C
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Refer to Figure 10-3. Best friends Laurel and Hardy, both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?
A) They have identical movie preferences. B) The diagrams do not provide any information about relative preferences. C) Laurel enjoys science fiction movies more than Hardy. D) Laurel enjoys romantic comedies more than Hardy.
A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. The club could be soundproofed for a cost of $5,000 or move at a cost of $8,000 . The class can't soundproof enough to overcome the music, but could be moved for $4,000 . According to Coase,
a. the club should be soundproofed so both businesses can stay open b. the club should be soundproofed because it is the one generating the externality c. the club should move rather than be soundproofed because eliminating an externality is better than compensating for it d. the class should move because it can eliminate the externality at a lower cost than can the nightclub e. whichever business has been there longer has the overriding property right; the other should adjust
Consumer Reports magazine benefits consumers by
a. increasing the marginal benefit of information b. reducing the marginal benefit of information c. reducing the marginal cost of information d. increasing the marginal cost of information e. showing which products are in vogue
Which of the following helps explain why the law of supply exists?
A) Larger outputs result in lower costs of production. B) The law of increasing opportunity cost C) The costs of production remain constant throughout all levels of output. D) Sellers realize that if the price increases, they make larger profits and do not need to change their production. E) The law of demand