Perfect price discrimination is the same thing as predatory pricing
Indicate whether the statement is true or false
False
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The invisible hand suggests that:
A) individuals working for self-interest will eventually maximize the well-being of society. B) equilibrium in a competitive market is determined independent of demand and supply. C) government intervention is necessary to rectify market imperfections. D) the price mechanism allocates resources only to the people with high income in the country.
The Fed could use reserve requirements as a monetary policy instrument. In terms of desirable features for policy instruments, assess the viability of using reserve requirements.
What will be an ideal response?
In the above table, the marginal propensity to save is
A. 0.2. B. 0.6. C. 0.8. D. 0.4.
Desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 100 - 500r. Real money demand is Md/P = Y - 2000i. Other variables are ?e = 0.05, G = 200, 
= 1000, and M = 2100.(a)Find the equilibrium values of the real interest rate, consumption, investment, and the price level.(b)Suppose the money supply increases to 2800. Find the equilibrium values of the real interest rate, consumption, investment, and the price level. (Assume that the expected inflation rate is unchanged.)
What will be an ideal response?