The Federal Reserve finances its credit policy with
A) reserve deposits that private banks hold with the Fed.
B) the insurance premiums collected by the FDIC.
C) borrowing from the federal government.
D) funding from the U.S. Treasury Department.
A
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Can positive economic profits persist under monopolistic competition in the long run. Why?
What will be an ideal response?
Other things being equal, what is the effect of deficit spending on credit markets?
A) The supply of credit will increase while the demand for credit remains the same. B) The demand for credit increases while the supply of credit remains constant. C) Both the demand for credit and the supply of credit will decrease. D) Both the demand for credit and the supply of credit will increase.
Assume a firm is currently producing 800 units of output, P = $10, MC = $10, ATC = $8, and AVC = $6. In this case, the firm is maximizing its profit, which equals $1,600
Indicate whether the statement is true or false
A firm's fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000. What's the firm's contribution margin per unit?
a. $12 b. $10 c. $8 d. $4