Which of the following statements is true?
A) When banks borrow from the discount window, it is an admission of trouble.
B) The discount window is operated only in periods of economic expansion.
C) The discount window is accessible only to well-performing banks.
D) The discount window in the United States is operated by Citibank.
A
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In comparison to firms in other market structures, monopolists:
A) maximize social surplus. B) encourage the entry and exit of new firms. C) set price lower than marginal revenue. D) produce goods that do not have close substitutes.
Marginal profit is negative when:
A) marginal revenue is negative. B) total cost exceeds total revenue. C) output exceeds the profit-maximizing level. D) profit is negative.
Activists believe that
a. the M1 money supply should be increased at a steady rate annually. b. taxes should be increased during a recession in order to balance the federal budget. c. the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment. d. discretionary changes in macroeconomic policy can help smooth the business cycle of a market economy.
The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will appreciate when:
A. the U.S. Federal Reserve eases monetary policy. B. U.S. consumers increase their preference for Japanese cars. C. real GDP in the U.S. increases. D. real GDP in Japan increases.