A price index can be constructed by:
a. dividing the value of a market basket by the rate of inflation
b. dividing the current-year value of a market basket by the base-year value of the same market basket and multiplying by 100.
c. multiplying the value of a market basket by the rate of inflation.
d. multiplying the current-year value of a market basket by the base-year value of the same market basket and dividing by 100.
b
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Which of the following situations is likely to lead to dynamic open market operations?
A) A recession B) An increase in Federal Reserve float C) An increase in Treasury cash holdings D) An increase in currency outstanding
When the Fed is targeting the money supply, it has complete control over the interest rate
a. True b. False Indicate whether the statement is true or false
Graphically, the marginal revenue curve of a monopolist: a. lies below the demand curve of a monopolist
b. is the same as the demand curve of a monopolist. c. lies above the demand curve of a monopolist. d. is the same as the marginal cost curve of a monopolist.
Marginal social cost is made up of marginal private cost and external cost.
Answer the following statement true (T) or false (F)