Should a monopoly charge low introductory price in a two-period model?
A) Yes, if the extra profit in the second period is greater than the foregone in the first period.
B) Yes, if the demand in the second period is greater than the demand in the first period.
C) No. The first period profit is counted more.
D) No. Profit maximization decisions should be made separately.
A
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What is the goal of fiscal policy, and what tools have policymakers traditionally used to conduct fiscal policy?
What will be an ideal response?
A monopoly displays productive efficiency because it produces at the lowest possible average total cost
a. True b. False Indicate whether the statement is true or false
A decrease in the money supply might indicate that the Fed had
a. purchased bonds in an attempt to increase the federal funds rate. b. purchased bonds in an attempt to reduce the federal funds rate. c. sold bonds in an attempt to increase the federal funds rate. d. sold bonds in an attempt to reduce the federal funds rate.
Vault cash is equal to $8 million, deposits by depository institutions at the central bank are $2 million, the monetary base is $40 million, and bank deposits are $90 million. The money multiplier is equal to
A. 3.0. B. 4.0. C. 2.5. D. 5.0.