Open market operations by the Federal Reserve System include
A) Purchasing government securities from banks and other depository institutions.
B) Selling bonds to banks to expand their lending capacity.
C) Buying or selling of government bonds by the BMOC.
D) None of the above.
Answer: A
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For a single-price monopoly,
A) if marginal cost exceeds marginal revenue, profits will increase if output decreases. B) if marginal revenue exceeds marginal cost, profits will increase if output decreases. C) there are several different price and output combinations that maximize profit. D) marginal revenue will be greater than price if demand is elastic. E) marginal revenue will be greater than price if demand is inelastic.
A bank holds its reserves as ________ and ________
A) securities; loans B) vault cash; deposits at the Federal Reserve C) vault cash; loans D) securities; deposits at the Federal Reserve
Refer to Figure 13-4. If the firm represented in the diagram is currently producing and selling Qa units, what is the price charged?
A) P0 B) P1 C) P2 D) P3
During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
a. a large increase in the availability of those items, ending shortages. b. a severe shortage of those essential commodities. c. an increase in the price of those items, thus alleviating shortages. d. new efforts to increase production of those commodities. e. a minor inconvenience as persons adjusted to the new law.