A decrease in government expenditure would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER B
Date: September 10th, 2020
Subject to the approval of the Board of Governors, the decision of choosing the president of a district Federal Reserve Bank is made by A) all nine district bank directors. B) the six district bank directors elected by the member banks. C) three district bank directors who are professional bankers. D) district bank directors who […]
Date: September 10th, 2020
Secondary markets make financial instruments more A) solid. B) vapid. C) liquid. D) risky. ANSWER C
Date: September 10th, 2020
Refer to Scenario 3. Diminishing marginal returns are incurred when output is increased from: A) 1 to 2 units of output. B) 2 to 3 units of output. C) 3 to 4 units of output. D) 4 to 5 units of output. ANSWER C
Date: September 10th, 2020
Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System? What will be an ideal response? ANSWER The New York district contains the largest banks in the country. The New York Fed supervises and examines these banks to insure their soundness and the safety of the […]
Date: September 10th, 2020
In 2001 and 2002, McDonald’s tried to improve the quality of its service by hiring mystery shoppers to evaluate service, cleanliness, and food quality. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The mound-shaped yield curve in the figure above indicates that the inflation rate is expected to A) remain constant in the near-term and fall later on. B) fall moderately in the near-term and rise later on. C) rise moderately in the near-term and fall later on. D) remain unchanged in the near-term and rise later […]
Date: September 10th, 2020
An increase in taxes would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER B
Date: September 10th, 2020
A liquid asset is A) an asset that can easily and quickly be sold to raise cash. B) a share of an ocean resort. C) difficult to resell. D) always sold in an over-the-counter market. ANSWER A
Date: September 10th, 2020
Assume a firm is currently producing 100 units of output, total fixed costs are $10,000, and average variable costs are $8. Based on this information we can conclude, with certainty, that the firm’s: A) marginal costs are $8. B) total variable costs are $8000. C) average fixed costs are $2. D) total costs are $10,800. […]
Date: September 10th, 2020
