If the Fed wants to sell more government bonds than people are willing to buy, then the Fed should
A. Encourage a government agency to buy the bonds.
B. Decrease the price it asks for the bonds.
C. Switch to another type of monetary policy lever.
D. Switch to fiscal policy.
Answer: B
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Ramsey pricing avoids cross subsidy
Indicate whether the statement is true or false
In order to be able to consume more in the future, you have to consume
A) less today and save the difference. B) more today to increase supply. C) more consumer goods. D) fewer capital goods.
Which of the following would not be considered a "leisure" activity by economists?
A. Making dinner B. Going skiing C. Cleaning the bathroom floor D. Making a work call.
Which of the following events would increase the four-firm concentration ratio in a milk industry with six firms?
a. The two largest milk producers merge. b. The largest milk producer buys an ice cream-making plant. c. The largest milk producer lures customers away from the second-largest producer. d. The four largest milk producers collusively fix prices.