The Fed’s tools of monetary policy are
A. government expenditures, interest rates, and taxation.
B. open-market operations, lending to banks, reserve requirements, and paying interest on reserves.
C. the money supply, government purchases, and taxation.
D. none of these.
Answer: B
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Is there a similarity between a monopoly and a monopolistically competitive firm in the long run? Explain your answer
What will be an ideal response?
An increase in the money supply is a discretionary fiscal policy which will increase aggregate demand
Indicate whether the statement is true or false
Temporary discounts offered to customers by competitive retailers usually reflect:
a. output rationing. b. a rise in market demand. c. price discrimination. d. a fall in input prices.
When moving along a market demand curve, the prices of related goods are assumed to be constant. With an aggregate demand curve,
A. the assumption is meaningless because we are using a market basket for all goods and services. B. the prices of related goods have an inverse relationship. C. all goods are assumed to have the same price. D. the same assumption holds true.