When the Fed uses monetary policy targets, they cannot use both a money supply target and an interest rate target at the same time because
A. It is easier for the Fed to keep track of, and influence, the interest rate
B. Interest rates are determined by money supply and money demand that the Fed does not control money demand
C. The Fed is only allowed to choose one target at a time to publish the Congress
B. Interest rates are determined by money supply and money demand that the Fed does not control money demand
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The above table gives the demand and supply schedules for cat food
If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
In monopolistic competition, a firm has some ability to affect the price for its product because of
A) easy entry and exit. B) economic profits. C) product differentiation. D) many competitors.
The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas
As a result, for prices greater than $7, the A) supply curve is unchanged. B) supply curve is vertical. C) demand curve becomes vertical. D) demand curve becomes horizontal.
Refer to the above figure. If a price ceiling of $3 was set
A) the quantity sold would be 80 units. B) there would be a surplus of 40 units. C) there would be a shortage of 40 units. D) there would be a shortage of 20 units.