Tag: Economics – Others

Currently the Fed sets monetary policy by targeting:
Multiple Choice
the level of nonborrowed reserves.
the Fed funds rate.
the prime rate.
the level of borrowed reserves.
the stock market.

Unrealistic safety expectations
may result in more unsafe practices
may motivate workers to obey standards
will encourage worker participation
will result in less injuries and accidents

The Federal Reserve had a twenty-year charter until it was made permanent by?
the Banking Act of 1933
the Aldrich-Vreeland Act
the McFadden Act of 1927
the Banking Act of 1935

A ◻ means that the governasent keeps the exclange rate agains sone ober currency at or near a particular target.lived eschange rateominat exchange talereal exchange rateTaylor rule

If leakages exceed injections:
A. The economy will stabilize at full employment.
B. Interest rates will rise.
C. Economic activity will increase.
D. Economic activity will decrease.

The supply-side effects show that a tax cut on labor income ◻ the supply of labor and employment.
increases
decreases
increases
increases; decreases
decreases

Nine of the top 10 exporting countries are countries with
A. cheap labor
B. dependence primarily on raw material exporfs
C. high incomes per capita
D. small land masses

20) In a model with money neutrality, a 10% increase in the money supply leads to an increase of output by
A) more than 10%.
B) 10%.
C) less than 10%, but more than zero.
D) zero.

22) Price tags attached to goods for purchase at a store would be an example of money’srole as aA) medium of exchange.B) store of value.C) unit of account.D) none of the above

Suppose a profit-maximizing firm in a perfectly competitive market is earning an economic profit of $1,345. If the firm’s fixed cost increases from $200 to $300, the firm will: