If the economy is in a recession, which point in the graph shown would likely represent this?
A. E1
B. E2
C. E3
D. E4
B. E2
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If a bank receives a $5 million discount loan from the Fed, then the bank's reserves will
A) increase by $5 million. B) increase by more than $5 million. C) increase by less than $5 million. D) not change.
For a single-price monopoly, price is
A) greater than marginal revenue. B) one half of marginal revenue. C) equal to marginal revenue. D) unrelated to marginal revenue. E) always less than average total cost when the firm maximizes its profit.
A good that is both excludable and rivalrous is a(n):
a. public good. b. club good. c. private good. d. inferior good. e. necessary good.
Which of the following statements is true?
A. Inflation will have no effect on an individual whose income is indexed to the inflation rate. B. An individual living on a fixed income is always made better off as a result of deflation. C. Everyone in society benefits from inflation. D. Those individuals receiving welfare benefits have been harmed by inflation because increases in welfare payments have not kept pace with inflation.