Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements
b. Because the public responds to open market operations in unpredictable fashions
c. Because the Fed does not know how much reserves will change when it buys or sells securities
d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves
d
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The Law of Variable Proportions deals with the___________________between the input of productive resources and and the output of final products.
Fill in the blank(s) with the appropriate word(s).
A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called
A) a budget line. B) an isocost line C) an isoquant. D) an optimal input combination curve.