If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities, then
A) consumer surplus is larger than under single-price monopoly.
B) social welfare is larger than under perfect competition.
C) the monopoly's profits are larger than under single-price monopoly.
D) the monopoly's profits are larger than under perfect price discrimination.
C
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An overvalued exchange rate is an exchange rate:
A. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal. B. that equals the number of units of a foreign currency over the number of units of domestic currency. C. that has an officially fixed value less than its fundamental value. D. that has an officially fixed value greater than its fundamental value.
If the Board of Governors of the Federal Reserve System increases the reserve requirement, this change will ________.
A. decrease the excess reserves of member banks and thus decrease the money supply B. decrease the excess reserves of member banks and thus increase the money supply C. increase the excess reserves of member banks and thus decrease the money supply D. increase the excess reserves of member banks and thus increase the money supply
According to rational expectations theory, predictable expansionary monetary and fiscal policies to reduce the unemployment rate are:
a. desirable because the result is to lower inflation. b. harmful because the only result is higher inflation. c. ineffective on the price level. d. None of these.
Assuming all excess reserves are loaned out, if the reserve ratio is 8 percent, the money multiplier will be equal to:
A. 2. B. 8. C. 12.5. D. 16.67.