Other things the same, when the price level rises more than expected, some firms will have
a. higher than desired prices, which increases their sales.
b. higher than desired prices, which depresses their sales.
c. lower than desired prices, which increases their sales.
d. lower than desired prices, which depresses their sales.
c
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If Treasury deposits at the Fed are predicted to ________, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) rise; defensive; drain B) fall; defensive; drain C) rise; dynamic; inject D) fall; dynamic; drain
Deflation is an overall:
A. rise in prices in the economy. B. decline in prices in the economy. C. rise in prices in the economy, excluding those with historically volatile price changes. D. decline in prices in the economy, excluding those with historically volatile price changes.
A fair price gets its name because it is the price at which
a. society values the marginal product in proportion to the cost of the resources used in production b. the marginal benefit of the last unit consumed is equal to the marginal value of the resources used to produce it c. the monopolist would make normal profit in a competitive market d. resources are distributed equitably e. normal profit would be made in any other market
Subprime mortgage
What will be an ideal response?