Many economists believe
A) the Fed could have reduced the severity of the Great Depression by raising interest rates.
B) the Fed could have reduced the severity of the Great Depression by encouraging banks to make fewer loans to insolvent businesses.
C) bank failures increased the severity of the Great Depression.
D) the severity of the Great Depression and the policies of the Fed were unrelated.
C
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Conducting the nation's monetary policy is the duty of the
A) Department of Commerce. B) U.S. Treasury department. C) Federal Reserve System. D) Federation of Banks. E) Federal Bank Supervisor.
Refer to Figure 5-1. At the market equilibrium, the deadweight loss is equal to
A) $0. B) $500,000. C) $1,000,000. D) $2,000,000.
Fred has always been known as "the rich kid." Strictly speaking, this must mean that ________
A) Fred has a lot of cash B) Fred's income is quite high C) Fred won the lottery before he was legally eligible D) Fred has a flashy wardrobe E) Fred has a lot of wealth
When Mark recruits a new motor mechanic in his car repair and service workshop, the number of cars serviced in a day increases by five. If the number of servicing orders received by Mark remains the same, it implies that:
a. the marginal physical product of the new motor mechanic is five. b. the marginal revenue product of the new motor mechanic is zero. c. the marginal revenue product of the new motor mechanic is five. d. the marginal physical product of the new motor mechanic is zero.