Unlike a perfectly competitive firm, a monopolistic competitor does not have a short-run shut-down point
Indicate whether the statement is true or false
FALSE
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What can the central bank of Autarkia do to lower the rate which banks charge each other for overnight loans? How will this affect the economy if it is facing a downturn?
What will be an ideal response?
An important function of the Federal Reserve is
a. clearing checks b. printing currency c. overturning reserve requirements d. controlling the demand for money e. making a large profit
A Japanese bank buys U.S. government bonds, this purchase
a. increases U.S. net capital outflow and has no affect on Japanese net capital outflow. b. increases U.S. net capital outflow and increases Japanese net capital outflow. c. increases U.S. net capital outflow, but decreases Japanese net capital outflow. d. decreases U.S. net capital outflow, but increases Japanese net capital outflow.
In the 1980s, Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States. B) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. C) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. D) The Japanese government wanted more automobiles to be available for export to countries other than the United States.