The ability of the Federal Reserve to use monetary policy to affect economic variables such as real GDP ultimately depends upon its ability to affect
A) nominal interest rates. B) foreign exchange rates.
C) real interest rates. D) tax rates.
C
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From the airlines' perspective, amenities competition is preferable to price competition because revenues are not adversely affected and it is easier to determine the strategies of one's competitors
Indicate whether the statement is true or false
Situation 37-2 Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 37-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A) steal more and produce less. B) steal less and produce less. C) produce more and steal more. D) produce more and steal less.
A luxury good is one whose demand ______ as income increases.
A. decreases B. does not change C. rises sharply D. rises slightly
The price elasticity of demand for heart transplants is perfectly inelastic. Thus, the price elasticity demand for heart transplants is
A. 1.0. B. 0.0. C. -1.0. D. -100.0.