A firm’s average fixed cost
A. does not vary with output.
B. decreases as output rises.
C. is equal to average cost when average cost is minimized
D. causes marginal cost to rise as output rises.
Answer: B
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In 2011, the largest dollar volume of imports for the U.S. came from
a. consumer goods. b. industrial supplies. c. petroleum. d. automobiles.
Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:
A. $100 million decrease in the money supply. B. $100 million increase in the money supply. C. $200 million increase in the money supply. D. $500 million increase in the money supply.
Suppose that all banks maintain a 100 percent reserve ratio. If an individual deposits $ 3,000 of currency in a bank,
A. the money supply is unaffected. B. the money supply rises by more than $3,000. C. the money supply rises by less than $3,000. D. the money supply decreased by less than $3,000.
________: the change in investment with respect to the change in interest rates
Fill in the blank(s) with correct word