Because of diminishing returns, a factor in abundant supply has a
a. high marginal product and a high rental price.
b. high marginal product and a low rental price.
c. low marginal product and a high rental price.
d. low marginal product and a low rental price.
d
Economics
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Starting from full employment at the initial target inflation rate, if there is an adverse inflation shock, then the Federal Reserve must _____ in order to keep inflation from becoming permanently higher.
A. increase the target inflation rate. B. decrease the target inflation rate. C. maintain the initial target inflation rate. D. shift the short-run aggregate supply curve up.
Economics
In a commercial bank's T-account, reserves and outstanding loans are recorded as:
a. debts. b. profits. c. assets. d. liabilities.
Economics