Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
A. Yes, through its ability to affect the money supply.
B. Yes, through its ability to change tax levels.
C. No, the Fed is forbidden by the Constitution from intervening in the economy.
D. No, the Fed almost always follows a passive monetary policy.
Answer: A
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From 1995-2007, the Irish economy ________
A) suffered from severe unemployment, famine and labor migration B) witnessed a boom in the real economy, but suffered through a collapse in asset prices C) enjoyed one of the highest growth rates in the world D) suffered through a period of prolonged deflation
If an individual's indifference curve map does not obey the assumption of a diminishing MRS, then
a. the individual will not maximize utility. b. the individual will buy none of good X. c. tangencies of indifference curves to the budget constraint may not be points of utility maximization. d. the budget constraint cannot be tangent to an appropriate indifference curve.