The Fed wants to increase the quantity of funds available through the Term Auction Facility. The Fed sets the
a. price of the loan, and money supply increases
b. quantity of borrowing, and money supply increases.
c. price of the loan, and money supply decreases.
d. quantity of borrowing, and money supply decreases.
b
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An example of a market where a Bertrand model would be NOT be plausible is the market for
A) pizza. B) sweaters. C) motorcycles. D) toothpicks.
Assume the market was in equilibrium in the graph shown. If the market price gets set to $7, which of the following is true?
A. Some producers gain surplus, but total surplus falls.
B. Some producers lose surplus, but total surplus rises.
C. Some consumers gain surplus, but total surplus falls.
D. Some consumers lose surplus, but total surplus rises.
Firm A and B are producers in the same perfectly competitive industry. If Firm A earns a marginal revenue of $17,
a. it earns an average revenue less than $17 b. Firm B earns an average revenue of $17 c. Firm B will try to charge $16 per unit d. it earns an average revenue greater than $17 e. Firm B earns an average revenue greater than $17
Suppose that you charted the rate of unemployment on the same graph. How would you expect the graph of unemployment to look in comparison?
a. It would be similar but shifted slightly to the right.
b. It would be inverted but shifted slightly to the right.
c. It would be similar but shifted slightly to the left.
d. It would be inverted but shifted slightly to the left.