A 1977 amendment to the Federal Reserve Act of 1913 says the Fed should "promote" which of the following goals?
a. only price stability
b. only maximum employment
c. only price stability and maximum employment
d. price stability, maximum employment, and moderate long-term interest rates
d
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Explain the differences between using the monetary base versus federal funds rate as the monetary policy instrument. Which does the Fed use as its instrument?
What will be an ideal response?
In the market for batteries, the three largest firms earn 90% of the total revenue and there are 35 firms in the industry. This industry is best described as
A) oligopoly. B) monopoly. C) monopolistic competition. D) perfect competition.
Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
A. Taxes on pollution B. Voluntary compliance C. Tradable emissions permits D. Direct controls like legal ceilings
In Figure 5.7, assuming perfect competition, at MR4 there will be 
A. no pressure on the price to change. B. short-run pressure on the price to fall. C. long-run pressure on the price to fall. D. short and long-run pressure on the price to fall.