To increase the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get more currency from the Treasury
B) make each bank set its own reserve levels
C) reduce the reserve requirement for banks
D) increase the reserve requirement for banks
C
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A monopolist can sell 7 units per day at $7 per unit, or 8 units per day at $6 per unit. Its marginal revenue for the eighth unit of output is: a. $48. b. $6
c. $1. d. -$1.
Quantity demanded will equal quantity supplied if a ________ is set ________ the equilibrium price.
A. price floor; above B. price ceiling; below C. price ceiling; at or below D. price ceiling; above
What is meant by saying that automatic fiscal policy is countercyclical?
What will be an ideal response?
Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers. B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups. C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms. D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.