The Fed loses some control over the interest rate once it targets the money supply,
a. but the interest rate doesn't move in an inappropriate direction with respect to the Fed's monetary policy
b. and the interest rate often moves in the opposite of the targeted direction
c. but it can still dictate what the interest rate will be
d. and loses as well control over open market operations which are linked to the interest rate
e. but still maintains indirect control through open market operation
A
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Government printing of money to finance government spending is called
A) irresponsible. B) an open-market purchase. C) sterilization. D) seigniorage.
A good synonym for elasticity would be
a. stability b. volatility c. stickiness d. demand e. responsiveness
The reason firms often choose sales maximization as a goal is because
a. that is where profits are maximized. b. it is impossible to maximize profits. c. firms are managed and owned by different groups of people with different goals. d. owners believe setting price/output to maximize profits is unfair to consumers.
In comparison to a competitive industry how is a monopoly different?
A.) High prices and profits signal consumers' demand for more output. B.) Firms try to operate where marginal cost equals marginal revenue. C.) The product is standardized or unique. D.) During price adjustments price equals marginal cost throughout the process.