In recent years, the Fed has chosen to target interest rates rather than the money supply because
a. Congress passed a law requiring them to do so.
b. the President requested them to do so.
c. the money supply is hard to measure with sufficient precision.
d. changes in the interest rate change aggregate demand, but changes in the money supply do not.
c
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What are the different types of price discrimination?
What will be an ideal response?
Gresham's Law:
a. applies only to bimetalism issues. b. applies only to monetary issues in general. c. applies to a wide variety of situations. d. is only understood after taking graduate-level courses.
Alexander lives in an apartment building and gets a $250 benefit from playing his stereo. Mary, who lives next door to Alexander and often loses sleep due to the loud music coming from Alexander's stereo, bears a $350 cost from the noise. Mary would like to offer Alexander some money to turn down the volume on his stereo. If Mary had to hire a lawyer to draw up the contract, what is the maximum
amount she could pay to the lawyer to ensure that both Alexander and Mary would benefit from the agreement? a. an amount less than $100 b. an amount between $100 and $250 c. an amount between $250 and $350 d. Any amount could result in both parties benefiting from the agreement.
In this graph, fewer government purchases and/or higher taxes will move the equilibrium ______.
a. off the LRAS curve
b. off the AD2 curve
c. from point e1 to point E2
d. from point E2 to point e1