Author Question: Suppose the representative firm suddenly has less capital at its disposal. What happens to labor ... (Read 56 times)

EY67 · **on:** Jun 30, 2018

Suppose the representative firm suddenly has less capital at its disposal. What happens to labor demand?

A) It increases.
B) It stays the same.
C) It decreases.
D) We cannot tell.

Question 2

Monetary policy decisions, such as the target growth rate in the money supply or the target level for interest rates, are set by the

a. president and congress.
b. Federal Reserve Board of Governors.
c. Shadow Open Market Committee.
d. presidents of the Federal Reserve banks.
e. Federal Open Market Committee (FOMC).