Firms in monopolistic competition determine the profit-maximizing level of output by producing
A) the same output level as rivals do.
B) where average total cost is minimized.
C) at the point of minimum average fixed cost.
D) where marginal revenue equals marginal cost.
E) where price equals average total cost.
D
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Finance companies are the largest issuers of
A) commercial paper. B) shares. C) long-term securities. D) repurchase agreements.
Interest-rate ceilings on deposits: a. meant banks were guaranteed "cheap money" from depositors
b. were imposed because without them, as was the case in the 1970s, banks couldn't be profitable. c. led to banks losing deposits whenever market rates went above the ceiling rates. d. are only effective when market rates are below the ceiling rates. e. were developed by money market mutual funds as a marketing device.
Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?
a. Cyclical. b. Frictional. c. Structural. d. Voluntary. e. Seasonal.
When commercial banks borrow reserves from the Fed, the quantity of reserves in the banking system ________ and, ultimately, the money supply ________.
A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases