When the Fed alters the types of assets it owns, it is engaging in
A. quantitative easing.
B. forward guidance.
C. changing the discount rate.
D. international balance management.
Answer: A
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According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.
Refer to Figure 12-9. At price P2, the firm would produce
A) Q2 units. B) Q3 units. C) Q4 units. D) zero units.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:
A. $100. B. $300. C. $200. D. $400.
A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter
a. True b. False