Although the Fed professed employment of a monetary aggregate targeting strategy during the 1970s, its behavior suggests that it emphasized
A) free-reserve targeting.
B) interest-rate targeting.
C) a real-bills doctrine.
D) price-index targeting.
B
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According to your text, controversies about negative externalities are almost always conflicts between the legitimate expectations of citizens and the
A) desire of individuals for greater profits. B) desire of politicians to be reelected. C) legitimate expectations of other citizens. D) mindless urge for more material goods. E) strident demands of environmentalists.
Pricing to Competition When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $350 . The economics consulting firm it hired to estimate the demand elasticity confirmed this was the
optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4 . Also, it eked out cost savings and now has a unit cost of $300 . What price should ShorTech charge now?
Two goods are complementary if:
a. they are part of the basic food group. b. each performs the same basic task. c. the cross elasticity of demand is positive. d. they are used together. e. the income elasticity of demand is negative.
Where Y is GDP, C is consumption, I is investment, G is government spending, and there is no international trade, national saving equals:
A. Y + C + G. B. C + I + G. C. Y - C - G. D. Y - C - I.