In the late 1980s and the early 1990s, the Fed followed a policy of
a. controlling the money supply to stimulate investment
b. decreasing interest rates to stimulate investment
c. fixing the money supply at a constant rate of growth in order to stimulate investment
d. allowing the money supply to increase in order to stimulate international trade
e. selling its government bonds in order to reduce the size of the federal government's debt
B
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If the demand for a good were completely inelastic,
A) the good is a basic necessity. B) the good is a luxury. C) there are no substitutes for the good. D) there had been a long period of time for people to adjust their behavior. E) people who own the good currently do not want to give it up except at much higher prices.
Answer the following statements true (T) or false (F)
1) The annual interest rate that is used to calculate the discount factor is called the discount rate. 2) The longer the period of time until receiving a future amount of money, the more interest that can be earned, so the larger the discount factor. 3) All else equal, the present value of a sum of money will be smaller the larger the interest rate. 4) An annuity factor can be used when payments change each year. 5) All else equal, when a manager is choosing between two payment plans, a profit-maximizing manager should chose the plan with the lowest present value.
The U.S. negative balance of trade was almost ________ in 2008.
A. $200 billion B. $400 billion C. $600 billion D. $800 billion
If Tie-Dyed T-Shirts is currently employing labor so that the wage is greater than the marginal revenue product of labor, it must also be true that
A. total revenues would be less than total costs. B. the price of the product must be greater than marginal cost. C. the price of the product must be less than marginal cost. D. the wage is less than marginal cost.