Pure monopoly is not studied because of its descriptive realism, but because it is a stepping stone toward more realistic models
a. True
b. False
Indicate whether the statement is true or false
True
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If real GDP decreases, the demand for money curve will shift
A) leftward and the interest rate will rise. B) leftward and the interest rate will fall. C) rightward and the interest rate will rise. D) rightward and the interest rate will fall.
Refer to Figure 7-2. The tariff causes domestic consumption of coffee
A) to rise by 20 million pounds. B) to fall by 27 million pounds. C) to rise by 6 million pounds. D) to fall by 7 million pounds.
Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?
a. Policymakers have studied the effects of the price floor carefully and they recognize that the price floor will improve the efficiency of resource use. b. Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into enacting the price floor. c. Buyers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor. d. Sellers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.
If the market federal funds rate were above the target rate, the response from the Fed would likely be to:
A. lower the IOER. B. lower the discount rate. C. sell U.S. Treasury securities. D. purchase U.S. Treasury securities.