For more than 20 years, the Fed has used the federal funds rate as its monetary policy target. It has not targeted money supply at the same time because the
A. Fed does not have the authority to control both targets
B. Fed cannot target both at the same time: it has to choose between targeting an interest rate and targeting the money supply
C. Fed can target both at the same time, but it has chosen to target the interest rate as it is more reliable as a target
B. Fed cannot target both at the same time: it has to choose between targeting an interest rate and targeting the money supply
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A firm will increase its spending on advertising until
A) it has monopolized the market. B) it has deterred all future entry. C) the marginal benefit of advertising is zero. D) the marginal benefit of advertising equals the marginal cost of advertising.
The value of the next-best choice not chosen is called opportunity cost.
a. true b. false
Walmart, like many companies in the new economy, uses a hub-and-spoke distribution system to
A. decrease consumer demand. B. increase costs of stocking and inventory. C. change consumer attitudes toward warehouse shopping. D. decrease costs of stocking and inventory.
Under fractional banking, when a bank lends to a customer
A. the money supply increases. B. bank profitability is decreased. C. the bank is protected from a run. D. bank credit decreases.