When a person's income increases:
A. more bundles of goods and services become affordable.
B. less bundles of goods and services become affordable.
C. the bundles of goods and services that become affordable don't change.
D. the bundles of goods and services that become affordable must include more expensive goods and services.
A. more bundles of goods and services become affordable.
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Refer to Figure 4-3. Kendra's marginal benefit from consuming the third ice cream cone is
A) $13.00. B) $2.50. C) $1.50. D) $0.50.
The collapse of the Bretton Woods system marked
A) the end of floating exchange rates and a move to fixed exchange rates. B) marked the end of fixed exchange rates and a move to floating exchange rates. C) the beginning of the gold standard. D) a plunge in the price of gold. E) the elimination of paper currencies.
In the simple linear regression model Yi = ?0 + ?1Xi + ui,
A) the intercept is typically small and unimportant. B) ?0 + ?1Xi represents the population regression function. C) the absolute value of the slope is typically between 0 and 1. D) ?0 + ?1Xi represents the sample regression function.
When the Fed sells government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.