In the above figure, what quantity will a single-price monopolist produce?
A) Q1
B) Q2
C) Q3
D) Q4
A
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The most significant problem in trying to empirically measure the real rate of interest is that
A) there are so many different types of bonds. B) expected inflation is unobservable. C) interest rates fluctuate so much from day to day. D) banks infrequently change the prime rate of interest.
When the Fed lowers the discount rate, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Under a managed float,
a. currency traders "buy low and sell high" b. a central bank attempts to stabilize an exchange rate c. national governments use fiscal policy to prevent inflation d. managers allow product prices to float in response to supply and demand shifts e. governments attempt to harmonize their tax policies.
A normal good is one:
A. whose amount demanded will increase as its price decreases. B. whose amount demanded will increase as its price increases. C. whose demand curve will shift leftward as incomes rise. D. for which the consumption varies directly with income.