If the market interest rate decreases, then there will _____
Fill in the blank(s) with the appropriate word(s).
be a downward movement along the investment demand curve.
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There are ________ voting members on the FOMC
A) 4 B) 7 C) 12 D) 15
When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is
a. monetizing the debt. b. decreasing the money supply. c. decreasing bank reserves. d. increasing the difficulty of raising funds for government spending.
If the price elasticity of supply is 1.5, and a price increase led to a 1.8% increase in quantity supplied, then the price increase is about
a. 0.67%. b. 0.83%. c. 1.20%. d. 2.70%.
In order to prosper, entrepreneurs in a market economy must
A) have at least one million dollars of personal wealth for the financing of new projects. B) undertake projects that create wealth and increase the value of resources. C) undertake projects that require resources that are more valuable than the products produced. D) find ways to slow technological change.