How does the Fed Open Market Committee increase the money supply?
It purchases bonds.
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Effective collusion generally is more difficult as the number of oligopolistic firms involved increases
a. true b. false
For production functions with decreasing returns to scale, a proportional increase in output
A. requires a more-than-proportional growth in all inputs. B. exhibits diminishing returns. C. requires proportional growth in all inputs. D. requires a less-than-proportional growth in all inputs.
What does the dotted line between C and D represent?
a. excess production
b. excess consumption
c. aggregate expenditure
d. aggregate production
Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). The interest rate on this loan is about:
A. 12.5 percent. B. 14.5 percent. C. 17.6 percent. D. 10 percent.