Supply-siders and Keynesians agree that with the correct approach to stabilization policy, it is possible to reduce both the unemployment rate and the inflation rate
Indicate whether the statement is true or false
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The federal funds rate is the interest rate that
a. the government charges banks who borrow from it b. the Fed charges banks who borrow from it c. the federal government pays to borrow money d. federally or nationally chartered banks charge their customers for commercial loans e. banks charge other banks for short-term loans
The Fed is institutionally independent. A major advantage of this is that monetary policy
a. is subject to regular congressional scrutiny. b. will often offset fiscal policy. c. is not controlled by politicians. d. is usually coordinated with fiscal policy.
When a regulatory agency uses marginal cost pricing to regulate a monopolist,
a. price will exceed marginal cost. b. production costs will probably exceed the total revenues of the monopolist. c. marginal cost will equal average total cost. d. social welfare could be improved if average cost pricing was used instead
If P > ATC then economics profits are positive
a. true b. false