Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve.
B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve.
C) Being the only seller in the market, the monopolist faces the market demand curve.
D) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve.
Answer: C
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Which one of the following is a function of the Federal Reserve System?
A) providing the economy with currency B) serving as a lender of last resort C) providing a system for check clearing D) all of the above
The effects of increased inflationary expectations is depicted in a(n)
a. upward shift in the investment curve b. downward shift in the investment curve c. upward shift in the consumption curve d. downward shift in the consumption curve e. move to the right along an existing consumption curve
The structural deficit declines as the economy moves toward full employment.
Answer the following statement true (T) or false (F)
The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy. In this case, the crowding-out effect suggests that investment spending would:
A. Increase, thus partially offsetting the fiscal policy B. Increase, thus partially reinforcing the fiscal policy C. Decrease, thus partially offsetting the fiscal policy D. Decrease, thus partially reinforcing the fiscal policy