The four distinct tools of policy used by the Fed to influence the money supply are
A) interest rates, government spending, tax rates, and government transfer payments.
B) open market operations, discount policy, reserve requirement policy, and adjusting interest on reserves.
C) open market operations, adjusting the exchange rate of the dollar, government purchases, and reserve requirement policy.
D) reserve requirement policy, discount policy, interest rates, and tax rates.
B
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If the number of unemployed workers in an economy is 4 million, and the size of the labor force in the economy is 16 million, the unemployment rate in the economy is:
A) 8 percent. B) 4 percent. C) 30 percent. D) 25 percent.
A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
A) $30. B) $150. C) $105. D) Cannot be determined from the above information