Which of the following statements is true?
a. The Fed can target the interest rate and money supply at the same time but only during periods of inflation
b. All of the answers to this question are true.
c. If the Fed chooses a money supply target, it runs the risk of interest rate variations that may create a new set of problems.
d. If the Fed chooses a money supply target, it runs the risk of money supply variations that may create a new set of problems.
e. If the Fed chooses an interest rate target, it runs the risk of interest rate variations that may create a new set of problems.
C
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If the demand for labor increases
I. employment increases. II. the real wage rate increases. A) Only I is correct. B) Only II is correct. C) Both I and II are correct. D) Neither I nor II is correct.
Almost half of the world lives on less than $____ a day.
Fill in the blank(s) with the appropriate word(s).
During recessions
a. workers are laid off. b. factories are idle. c. firms may find they are unable to sell all they produce. d. All of the above are correct.
Fast Stop, a gasoline and grocery quick mart, charges $2 for a 20 ounce fountain drink and $3 for a 40 ounce fountain drink. This is an example of ________.
A) second-degree price discrimination B) an all-or-nothing offer C) two-part pricing D) third-degree price discrimination