The major purpose of the Federal Reserve buying government securities in open market operations is to:
a. Increase interest rates
b. Raise money for government spending
c. Allow banks to increase their lending
d. Reduce the excess reserves of banks
c. Allow banks to increase their lending
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The typical short-run production function is incapable of distinguishing among the different types of labor that might be hired by the firm
Indicate whether the statement is true or false
The most direct and important consequence of an increase in asymmetric information problems is ________
A) a decrease in the probability of loan repayment B) inability to assess the probability of loan repayment C) unwillingness of borrowers to accept the market rate of interest D) inability of creditors to acquire enough funds to meet borrowers' demand
How could transferable pollution rights lead to pollution being reduced at the lowest possible opportunity cost?
If the minimum efficient scale of production is small relative to the size of a market, then
a. the industry will tend to be highly concentrated b. there will be much strategic interdependence among the sellers in the industry c. the industry is unlikely to be an oligopoly d. it is more likely that sellers in the industry will successfully collude e. there will be much merger activity in the industry