At age 40, Joe is considering quitting his job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year. He will retire at age 70. Which of the following makes it more likely that Joe will decide to go back to college full-time?
A) The rate of interest increases.
B) The rate of interest decreases.
C) The government enacts mandatory retirement at age 60.
D) Tuition increases.
B
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The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is not one of the ways the Fed responded?
A) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities. B) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves. C) The Fed helped JP Morgan to acquire Bear Stearns, a nearly bankrupt investment bank. D) The Fed made investment banks eligible for discount loans.
Moving downward along a linear (straight-line) downward-sloping demand curve, the
A. price elasticity of demand does not change. B. quantity demanded decreases. C. demand becomes more elastic. D. demand becomes less elastic. E. total revenue never changes. Reset Selection