Discuss and explain each of the instruments of monetary policy
What will be an ideal response?
The instruments are: the discount rate, open market operations, and reserve requirements.
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Which of the following is a characteristic of a monopoly firm?
A) horizontal individual demand curve B) barriers to entry C) easy entry and exit D) many buyers and sellers
Predatory pricing is a form of barrier to entry
Indicate whether the statement is true or false
If an economy's GDP rises, then it must be the case that the economy's
a. income rises and saving falls. b. income and saving both rise. c. income rises and expenditure falls. d. income and expenditure both rise.
If the price of a good increases by one thousandth of 1% and the quantity demanded goes to zero, then at that price, the good is
A. perfectly inelastic. B. perfectly elastic. C. inelastic. D. non-responsive.