The decrease in Money Supply, the Fed would?
A. Buy government's bonds
B. Increase the discount rate
C. Decrease the reserve requirement
D. All of the above
E. None of the above
B. Increase the discount rate
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A firm's supply curve is that portion of its average cost curve that lies above their marginal cost curve
a. True b. False
The price of a bond with a maturity date one time period into the future is equal to its face value
a. multiplier by 1 - r. b. multiplied by 1 + r. c. divided by 1 + r. d. divided by 1 - r.
If a firm makes zero economic profit, then the firm
A) has no incentive to stay in the industry. B) is better off exiting the industry. C) is indifferent between staying and exiting the industry. D) will shut down.
The growth of internet banking seems to be on the rise. Discuss what the continued growth of internet banking should do to both the economies of scale and scope of banking.
What will be an ideal response?