Which of the following is a good indicator of short-term interest rates in international markets?
A) prime rate
B) Treasury bill rate
C) LIBOR
D) Federal funds rate
E) none of the above
C
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What determines the supply of a nonrenewable natural resource?
What will be an ideal response?
Price differentiation is a situation in which
A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers. B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers. C) consumers' comparison-shop. D) the demand curve is vertical.
Which of the following events strained belief in the economy's ability to self-correct by way of price adjustment, leading to the development of discretionary fiscal policy in the 1930s?
a. The American Civil War b. World War I c. The Gulf War d. The Great Depression
Use the following diagrams to answer the next question.
Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand from AD1 to ________.
A. AD2 and then to AD3 B. AD3 and then to AD4 C. AD4 and then to AD3 D. AD3 and then to AD2