As a price setter, a monopoly
a. can establish any price it wants for each output level
b. can sell any output level it wants for each price
c. is constrained by the market demand curve
d. can use its pricing policy to shift the market demand curve
e. faces an upward-sloping demand curve for its output
C
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During the financial crisis of 2007-2009, the Fed's quantitative easing program raised fears of inflation among investors, and to combat this fear, the Fed announced it would withdraw the monetary stimulus as the economy recovered
What happened to inflationary expectations during the latter part of the 2007-2009 recession? A) Inflationary expectations decreased based on the Fed's promise to withdraw stimulus money from the economy. B) Inflationary expectations increased to record high levels despite the Fed's promise to withdraw stimulus money from the economy. C) Inflationary expectations did increase, but the increase only returned expected inflation to its pre-recession level. D) Inflationary expectations decreased to the point where the Fed became worried about the economy becoming deflationary.
The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. technological progress and increases in the capital stock. B. higher relative prices and technological progress. C. higher relative prices and a larger labor supply. D. technological progress and increases in the labor supply.
In the above figure, if we begin at S1 and the Fed sells bonds
A. the price of bonds falls, and the interest rate rises. B. the price of bonds rises, and so does the interest rate. C. the price of bonds falls, and so does the interest rate. D. the price of bonds rises, and the interest rate falls.
The Bank of Mesquite has $2 million in deposits and $550,000 in reserves. If excess reserves are equal to $150,000, the required reserve ratio is
A. 15%. B. 20%. C. 35%. D. 65%.