If the Fed wanted to use all of its policy variables to decrease the supply of money, which of following would that include?
a. Increasing its open market sales of government securities.
b. Increasing the required reserve ratio
c. Decreasing the interest rate it pays banks on bank reserves.
d. It would include all of the above.
d
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The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases, the
A) average total cost decreases. B) average total cost increases. C) marginal cost increases. D) marginal cost decreases. E) average variable cost is constant and the average fixed cost decreases.
Colorado State University allocates 10,000 tickets for each home game to students at no cost. Students are required to stand in line and prove they are a full time student to receive a free ticket
How is the scarce resource in this example allocated? A) first-come, first-served B) market price C) contest D) lottery
Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
A) shut down B) continue operating in the short run even though it is losing money C) continue operating because it is earning an economic profit D) Cannot be determined from the above information
An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income
a. True b. False Indicate whether the statement is true or false