1.When the Federal Reserve Bank buys US Treasury bonds on the open market then
A- then the money supply decreases, interest rates decline, gdp increases, and employment decreases
B- the money supply increases, interest rates increase, gdp decreases, and employment increases
C- the money supply decreases, interest rates increase, gdp decreases, and employment decreases
D- the money supply increases, interest rates decline, gdp increases, and employment increases
2. Countries can increase their welfare by engaging in specialization in production and international trade based on their:
a-relative levels of GDP
b-absolute advantage
c-comparative advantage
d-relative exchange rates
3. Short-run marginal cost of a good generally:
a- intersects the maximum points of both the average variable cost and the average total cost curves
b- falls for a time, but then begins to rise when the point of diminishing returns is reached.
c- is defined as the difference between total cost and total variable cost.
d- are based on total fixed costs.
1.When the Federal Reserve Bank buys US Treasury bonds on the open market then
A- | then the money supply decreases, interest rates decline, gdp increases, and employment decreases | |
B- | the money supply increases, interest rates increase, gdp decreases, and employment increases | |
C- | the money supply decreases, interest rates increase, gdp decreases, and employment decreases | |
D- | the money supply increases, interest rates decline, gdp increases, and employment increases |
2. Countries can increase their welfare by engaging in specialization in production and international trade based on their:
a-relative levels of GDP
b-absolute advantage
c-comparative advantage
d-relative exchange rates
3. Short-run marginal cost of a good generally:
a- | intersects the maximum points of both the average variable cost and the average total cost curves | |
b- | falls for a time, but then begins to rise when the point of diminishing returns is reached. | |
c- | is defined as the difference between total cost and total variable cost. | |
d- | are based on total fixed costs. |
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