In monopolistic competition, a firm must determine what price to set for its good because
A) the demand for its good is not perfectly elastic.
B) the demand for its good is perfectly elastic.
C) there are many buyers.
D) there are many sellers.
A
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Refer to Figure 10-3. Which of the following is consistent with the graph depicted above?
A) The government runs a budget deficit. B) An expected recession decreases the profitability of new investment. C) Taxes are changed so that real interest income is taxed rather than nominal interest income. D) Technological change increases the profitability of new investment.
The interest rate in the federal funds market:
a. is determined by the imposition of price controls imposed by the Fed. b. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. c. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. d. is an interest rate that is largely unaffected by the policies of the Fed.
Which of the following would be considered an ongoing expense?
A. Raw materials B. Advertising C. Employee salaries D. All of these could be considered ongoing expenses.
The combination of high unemployment and high inflation is termed
A. reflation. B. stagflation. C. depression. D. unflation.