Which is true of output-choice models of oligopoly behavior?
A) Both the Stackelberg and Cournot models can be constructed as sequential games.
B) The Stackelberg, but not the Cournot, model can be constructed as a sequential game.
C) The Cournot, but not the Stackelberg, model can be constructed as a sequential game.
D) Neither the Cournot nor the Stackelberg model can be constructed as a sequential game, but other output-choice models can be.
E) There is no relationship between any output-choice model and sequential games.
B
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The price reflecting the true social opportunity costs of a resource is known as
(a) a shadow price. (b) an equilibrium price. (c) a world price. (d) a price index.
"Monetarism" advocates a monetary policy
A) at the full discretion of the Fed. B) that fixes the growth rate of money. C) that fixes a constant short-term interest rate. D) that fixes the growth rate of real GDP. E) that fixes the unemployment rate.
During his tenure at the helm of the Federal Reserve System, Paul Volcker reestablished ________
A) a system of fixed exchange rates B) the role of open market operations in the monetary policy actions of the Fed C) the credibility of the Federal Reserve as an inflation fighting institution D) the targeting of monetary aggregates, like the fed funds rate
If the Fed sells $5 million in government bonds, how much will the money supply change?
a. It will increase by $5 million. b. It will increase by more than $5 million. c. It will decrease by $5 million. d. It will decrease by more than $5 million.