In addition to lowering the discount rate to increase the money supply, the Fed could also
A) purchase bonds on the open market and lower reserve requirements.
B) sell bonds on the open market and lower reserve requirements.
C) purchase bonds on the open market and raise reserve requirements.
D) sell bonds on the open market and raise reserve requirements.
A
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If a firm is a price taker and wants to earn as much profit as possible, it should expand output
a. to the quantity at which marginal cost is minimized. b. as long as marginal cost is less than price. c. to the quantity at which average total costs are minimized. d. to try to sell all the output it can produce so that its average fixed costs will be minimized.
If people are made unemployed because of a fall in aggregate demand this is known as:
a) Frictional unemployment b) Seasonal unemployment c) Cyclical unemployment d) Structural unemployment
Which of the following will most likely occur in an economy if more money is demanded than is supplied?
A. The amount of investment spending will increase. B. Interest rates will decrease. C. Interest rates will increase. D. The demand curve for money will shift to the left. E. The demand curve for money will shift to the right.
Monopolistically competitive markets are like perfectly competitive markets because in both markets firms:
A. have some control over price. B. face substantial barriers to entry. C. face a large number of competitors. D. have no control over price.