If the demand for money increases and the Fed wants interest rates to remain unchanged, which of the following would be appropriate policy?
A. Recall Federal Reserve notes from circulation.
B. Buy bonds in the open market.
C. Raise the discount rate.
D. Raise the legal reserve requirement.
Answer: B
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Compared to a perfectly competitive industry, a monopolist with the same marginal cost and demand curve will charge:
a. a higher price and produce a higher volume of output. b. a lower price and produce a higher volume of output. c. a lower price and produce a lower volume of output. d. a higher price and produce a lower volume of output. e. the same price and produce the same volume of output.
When an inverse relationship is graphed, the resulting line or curve is:
a. upward-sloping. b. horizontal. c. downward-sloping. d. vertical.
You are considering whether you should go out to dinner at a restaurant with your friend. The meal is expected to cost you $50, you typically leave a 20% tip, and a round-trip Uber ride will cost you $15. You value the restaurant meal at $30 and the time spent with your friend at $50. You should ____ to dinner with your friend because the benefit of doing so is _____ than the cost.
A. go; less B. go; greater C. not go; less D. not go; greater
The Japanese yen is an example of a soft currency.
a. true b. false