If the Federal Reserve wanted to stimulate the economy, it would most likely:
A. reduce the discount rate.
B. decrease reserves in the banking system.
C. increase reserves in the banking system.
D. Both A and C are true.
D. Both A and C are true.
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Economists should consider ________ when evaluating options
A) only explicit costs and benefits B) only implicit costs and benefits C) both explicit and implicit costs and benefits D) neither explicit nor implicit costs and benefits
If the marginal product of labor is equal to 5 and the marginal product of capital is 2, what is the marginal technical rate of substitution?
What will be an ideal response?
Because more than half the federal welfare budget goes for health care, almost zero U.S. residents lacked health insurance in 2006
a. True b. False
Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?
a. 9.1% b. 10.0% c. 18.2% d. 20.0% e. 32.0%