In practice, the Fed focuses on changing reserves to change the total money supply.
Answer the following statement true (T) or false (F)
False
The Fed focuses on the interest rate and adjusts reserves to achieve that interest rate.
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Assume that supply decreases greatly and demand decreases slightly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
All else held constant, as additional firms enter an industry
A. less output is available at each given price. B. more output is available at each given price. C. the same output is available at each given price. D. output could increase or decrease at each given price.
The exchange rate of currencies between countries affects the prices of the goods purchased and sold between them.
Answer the following statement true (T) or false (F)
Refer to the short-run production and cost data. The curves of Figures A and B suggest that:
A. marginal product and marginal cost reach their maximum points at the same output.
B. marginal cost reaches a minimum where marginal product is at its maximum.
C. marginal cost and marginal product reach their minimum points at the same output.
D. AVC cuts MC at the latter's minimum point.