Which of the following events would cause the interest rates in an economy to increase?

a. Lower tax rates
b. A high discount rate
c. Lower reserve requirements
d. An open market operation to buy bonds


b

Economics

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If the theory behind an economic model fits the data poorly, you would probably want to

A) use the theory to predict what would happen if the economic setting or economic policies change. B) start from scratch with a new model. C) enrich the model with additional assumptions. D) restate the research question.

Economics

For a rational consumer, the consumer's surplus will never be a negative number

a. True b. False Indicate whether the statement is true or false

Economics

The rate at which a consumer is willing to trade one good for another to maintain the same level of satisfaction is affected by the

a. prices of the products. b. amount of each good the consumer is currently consuming. c. consumer's income. d. marginal value product.

Economics

Define the following terms and explain their importance to the study of macroeconomics. a. Central bank b. Federal Open Market Committee c. Supply of money d. Monetary policy

What will be an ideal response?

Economics