The reserve requirements and discount rates affect M2 but do not have much impact on M1.
Answer the following statement true (T) or false (F)
False
The Fed tools have an impact on both M1 and M2 because M2 includes all of M1 plus a few other items.
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The changing of government expenditures or taxes to achieve national economic goals is
A) inflationary fiscal policy. B) automatic fiscal policy. C) recessionary fiscal policy. D) discretionary fiscal policy.
Can a perfectly competitive firm successfully price discriminate? Hint: What does the demand curve look like for a perfectly competitive firm?
What will be an ideal response?
The accountant's cost of producing a bicycle refers to
a. the out-of-pocket payments made to produce the bicycle. b. the value of the goods that were given up to produce the bicycle. c. the bicycle's retail price. d. the marginal cost of the last bicycle produced.
An essential characteristic of a perfectly competitive market is that buyers and sellers have:
A. no competition and so must set the market price on their own. B. so much competition that they must work together perfectly to set a market price. C. so much competition that they have no ability set their own price. D. no control over the price they set because it is determined by government.