If the Fed chooses to sell bonds on the open market, it is attempting to:
a) lower interest rates using expansionary monetary policy.
b) lower interest rates using contractionary monetary policy.
c) raise interest rates using expansionary monetary policy.
d) raise interest rates using contractionary monetary policy.
Ans: d) raise interest rates using contractionary monetary policy.
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If an industry is made up of five identical firms, the four-firm concentration ratio is
A) 5%. B) 20%. C) 80%. D) 100%.
Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $2.00:
A. the market supply of milk is 33 units. B. the market supply of milk is 15 units. C. the market supply of milk is 18 units. D. the market supply of milk is 42 units.
Milton Friedman argued that as long as
A) the unemployment rate is higher than the inflation rate, the economy is not in long-run equilibrium. B) Real GDP grows, the inflation rate will fall. C) the expected inflation rate is not equal to the actual inflation rate, the economy is not in long-run equilibrium. D) nominal wages rise, so do real wages. E) none of the above
A higher labor to capital ratio results in greater productivity of labor.
Answer the following statement true (T) or false (F)