The policy directive that is produced from the FOMC meeting:
A. sets the specific discount rate for the next eight weeks.
B. instructs the staff of the New York Fed on how to manage the Fed's balance sheet.
C. sets the specific range that the target interest rate can fall within.
D. details the exact amount of U.S. Treasury securities the System Open Market Account Manager is to purchase or sell.
Answer: B
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a. True b. False Indicate whether the statement is true or false
A monopolist that is making a profit is producing where which of the following occurs?
A. P = MC. B. P = AC. C. MC = AC. D. P > AC.
If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that
a. Y and Z are complements. b. Y and Z are substitutes. c. Y and Z are unrelated. d. the demand for Y is elastic, but the demand for Z is inelastic.
The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively
A. low external cost. B. high social cost. C. high average variable cost. D. low marginal cost.