Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?
A) lower taxes B) raise the reserve requirement
C) buy U.S. Treasury bills D) raise the discount rate
C
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A tariff is a
a. tax on exports b. limit on the quantity of exports c. limit on the quantity of imports d. tax on imports e. subsidy on imports
If the interest rate were 12.5 percent, how much would people be willing to pay for a stock that was certain to yield a $20 per share stream of net earnings continuously in the future?
a. $20 b. $25 c. $160 d. $250
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, findings by Anil Kasyap showed that even though the catalogs listed in the Application were reissued every six months, the prices which were tracked in these retail catalogs:
A. were typically fixed for a year or more. B. changed every month. C. tended to fall during periods of high inflation. D. were not listed due to low rates of inflation.
Answer the following questions true (T) or false (F)
1. A fundamental assumption in game theory is that players do not interact with each other. 2. In a Nash equilibrium, all players select non-dominant strategies. 3. Price leadership is a form of explicit collusion where one firm in an oligopoly announces a price change and expects all other firms to follow suit.