If the Federal Reserve System wanted to tighten the money supply, the most powerful combination of actions would be to
a. raise reserve requirements, lower the discount rate, and buy government securities.
b. raise reserve requirements, lower the discount rate, and sell securities.
c. lower reserve requirements, raise the discount rate, and buy government securities.
d. raise reserve requirement, raise the discount rate, and sell government securities.
c. lower reserve requirements, raise the discount rate, and buy government securities.
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How is state and local government funded and how does such funding differ from federal government funding?
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more positive (or less negative). b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Below, the graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for an increasing-cost industry.
How much profit will the firm earn?
A. $3,100 B. $2,600 C. $3,750 D. $6,000 E. zero
Other things equal, a monopolist will hire
A) more workers than a perfectly competitive industry. B) fewer workers than a perfectly competitive industry. C) more workers than a perfectly competitive firm. D) the same number of workers as a perfectly competitive industry would.