The federal funds rate:
A. can never be close to zero.
B. may sometimes be targeted at zero.
C. is an intermediate target of the Fed's monetary policy.
D. is always slightly higher than the discount rate.
Answer: B
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The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot Pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, the price per pillow is
A) $70. B) $60. C) $40. D) $100. E) $30.
Which of the following statements best describes a normal good?
A) A normal good is a good that is rationed by the government. B) A normal good is a good that is readily available in the market. C) A normal good is a good whose supply increases as its price decreases. D) A normal good is a good whose demand increases with an increase in consumers' income.
Provide some real-world examples of price discrimination in action
What will be an ideal response?
According to John Maynard Keynes, government should:
a. attempt to set wages and prices when necessary to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment. b. not attempt to set prices and wages throughout the economy, nor take over and manage large corporations or entire industries directly to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment. c. manage large corporations and industries when necessary to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment. d. attempt to set prices and wages throughout the economy or take over and manage large corporations or entire industries directly to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.