Discount rate policy is ________ tool of the Fed in its attempts to influence ________, and thus the money supply
A) an unnecessary, the reserve-holding ratio
B) an unnecessary, high-powered money
C) a necessary, the reserve-holding ratio
D) a necessary, high-powered money
B
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New Keynesians hypothesize that
A) fluctuations in output are largely caused by supply shocks. B) the relationship between inflation and unemployment is exploitable in the long run. C) the relationship between inflation and unemployment is exploitable in the short run. D) there is no relationship between inflation and unemployment.
A single-price monopoly can sell 1 unit for $9.00. To sell 2 units, the price must be $8.50 per unit. The marginal revenue from selling the second unit is
A) $17.50. B) $17.00. C) $8.50. D) $8.00. E) $9.00.
Refer to Figure 5-1. Marginal social benefit is represented by which curve?
A) Supply B) D1 C) D2 D) All of the above represent marginal social benefit.
If the population increases, the market demand for most products will:
A. not change. B. decrease. C. increase. D. depend on supply.