Monopolistically competitive firms have monopoly power because they
A) face downward sloping demand curves.
B) are great in number.
C) have freedom of entry.
D) are free to advertise.
A
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If the Fed’s monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to interest rates.
One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, why is genetic testing causing adverse selection?
A. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get insurance. B. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insurance. C. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get hired by employers. D. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insured by insurance companies.
An increase in the discount rate:
A. reduces the cost of reserves borrowed from the Fed. B. signals the Fed's desire to increase the money supply. C. signals the Fed's desire to lend increased reserves to banks. D. increases the cost of reserves borrowed from the Fed.