If the Fed raises its target for the federal fund rate, this indicates that
A) the Fed is pursuing an expansionary monetary policy.
B) the Fed is attempting to combat deflation.
C) the Fed is pursuing a contractionary monetary policy.
D) The Fed is concerned that the growth in aggregate demand is too slow to keep up with potential GDP.
C
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See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the income elasticity of demand?
A) 0 B) 5/9 C) 1 D) 9/5 E) none of the above
Which of the following statements is true?
A) Consumer surplus measures the total benefit from participating in a market. B) When a market is in equilibrium consumer surplus equals producer surplus. C) Consumer surplus measures the net benefit from participating in a market. D) Producer surplus measures the total benefit received by producers from participating in a market.