According to the text, much of the increase in productivity that has occurred more recently in the fast food industry was the result of improvements in capital and technology. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Examples of discount bonds include A) U.S. Treasury bills. B) corporate bonds. C) U.S. Treasury notes. D) municipal bonds. ANSWER A
Date: September 10th, 2020
The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart A) an inflationary bias to monetary policy. B) a deflationary bias to monetary policy. C) a disinflationary bias to monetary policy. D) a countercyclical bias to monetary policy. ANSWER A
Date: September 10th, 2020
If there are barriers to entry into a market, it is possible for the existing firm(s) to earn positive economic profits. All of the following explain this except: A) new firms cannot enter to take advantage of the profits. B) resource immobility. C) it is possible for a firm in this situation to charge any […]
Date: September 10th, 2020
Describe the two methods of organizing a secondary market. What will be an ideal response? ANSWER A secondary market can be organized as an exchange where buyers and sellers meet in one central location to conduct trades. An example of an exchange is the New York Stock Exchange. A secondary market can also be […]
Date: September 10th, 2020
The largest expenditure component in the U.S. is investment expenditures. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The monetary policy (MP) curve indicates the relationship between A) the Federal Funds Rate and the real interest rate. B) the Federal Funds Rate and the inflation rate. C) the inflation rate and the expected inflation rate. D) the real interest rate the central bank sets and the inflation rate. ANSWER D
Date: September 10th, 2020
The primary indicator of the Fed’s stance on monetary policy is A) the discount rate. B) the federal funds rate. C) the growth rate of the monetary base. D) the growth rate of M2. ANSWER B
Date: September 10th, 2020
The interest rate charged on overnight loans of reserves between banks is the A) prime rate. B) discount rate. C) federal funds rate. D) Treasury bill rate. ANSWER C
Date: September 10th, 2020
Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the A) adverse selection problem. B) lemon problem. C) adverse credit risk problem. D) moral hazard problem. ANSWER D
Date: September 10th, 2020
