A bond is a
A. Ownership share in a private company.
B. License to use the Fed's discount window.
C. Certification that a bank has met the Fed's reserve requirement.
D. Promise to repay borrowed funds.
Answer: D
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Use the following graph showing cost curves for a perfectly competitive firm to answer the next question.
If the market price decreases to $0.55, the profit-maximizing quantity of output is
A. 0. B. more than 20, but less than 35. C. 20. D. 15.
The natural unemployment rate is the unemployment rate that exists when there is no
A) cyclical unemployment. B) frictional unemployment. C) structural unemployment. D) unnecessary unemployment. E) cyclical or structural unemployment.
Show graphically and explain why targeting an interest rate is preferable when money demand is unstable and the IS curve is stable
What will be an ideal response?
In the long run, Bubba's Baby Boutique, a monopolistically competitive firm,
a. earns zero normal profit but positive economic profit b. earns normal profit but zero economic profit c. earns normal and economic profit d. earns zero normal and economic profit e. might earn any level of economic profit; no level is guaranteed