The outside lags related to monetary policy tend to be quite long
Indicate whether the statement is true or false
TRUE
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One factor that contributed to the growth in the share of population employed in the United States between 1960 and 2010 was increased:
A. male labor force participation. B. female labor force participation. C. minimum wages. D. labor union participation.
Use the following table to answer the next question.Money SupplyInterest RateGross Investment$200 billion0.2%$1 trillion$250 billion0.2%$1 trillion$300 billion0.2%$1 trillionWhich limitation for monetary policy is illustrated by the table?
A. crowding out B. pessimistic business expectations C. policy lags D. the liquidity trap
Ben’s Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if his business’ total revenue exceeds his:
a) capital costs. b) implicit costs. c) variable cost. d) fixed cost.
Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies
A) decrease; appreciate B) increase; depreciate C) decrease; depreciate D) increase; appreciate