The Fed's control of the money supply is not precise because
a. Congress can also make changes to the money supply.
b. there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
c. the Fed does not know where all U.S. currency is located.
d. the amount of money in the economy depends in part on the behavior of depositors and bankers.
d
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Explain the difference between marginal cost and marginal benefit
What will be an ideal response?
The demand for a pack of gum is ______________ than is the demand for a steak because _______________.
A. less price elastic; a pack of gum requires a smaller portion of one's income. B. more price elastic; a pack of gum requires a smaller portion of one's income. C. less price elastic; a pack of gum is more of a luxury. D. more price elastic; a pack of gum is more of a luxury.
The aggregate demand curve slopes downward indicating that:
A. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. B. an increase in the general price level will increase the aggregate quantity of goods and services demanded. C. a change in the interest rate will alter the aggregate quantity of goods and services demanded. D. consumers substitute between domestic-made and foreign-made goods as their relative prices change.
The short-run industry supply curve for a perfectly competitive industry is the
A. vertical sum of the individual firms' marginal cost curves above AVC. B. horizontal sum of the individual firms' marginal cost curves above ATC. C. horizontal sum of the individual firms' marginal cost curves above AVC. D. vertical sum of the individual firms' marginal cost curves above ATC.