Even though prices may change frequently, they can be expected to gravitate toward equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
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If the Fed increases the discount rate, commercial banks pay a ________ interest rate if they borrow money from the Fed and will therefore ________
A) higher; borrow more money from the Fed and make more loans to consumers B) higher; deposit more money into their reserves at the Fed C) lower; borrow more money from the Fed and make more loans to consumers D) lower; borrow less money from the Fed and make fewer loans to consumers E) higher; borrow less money from the Fed and make fewer loans to consumers
If a profit-maximizing firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by
a. the price of its output times labor's marginal physical productivity. b. the marginal value product of labor. c. the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital. d. all of the above.
A comparative advantage is when a good can be produced at a(n) ________ cost in terms of other goods.
a. lower b. higher c. equal d. comparative
If there is excess demand in the loan able fund market?
A. Interest rates are above equilibrium B. Interest rates are below equilibrium C. Can be expected to rise D. A & C E. B & C