The target for the Federal Reserve is
A. the Federal Funds rate, though it has been a monetary aggregate.
B. and always has been inflation.
C. and always has been a monetary aggregate.
D. and always has been the Federal Funds rate.
Answer: A
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Which of the following is NOT a part of the Federal Reserve System?
A) the Federal Deposit Insurance Corporation B) the Board of Governors C) the Twelve District Federal Reserve banks D) the Federal Open Market Committee
During the 20th century, the highest savings rates in the U.S. were observed during
A) the Great Depression. B) World War II. C) the late 1980s and 1990s. D) none of the above.
The Happy Mountain Brewing Company sells ground organic coffee in one pound containers through several grocery chains in the US
The firm has two divisions: the roasting division buys raw organic coffee beans and then blends, roasts, and grinds the beans, and the merchandising division packages and distributes the ground coffee. a. Please draw a carefully labeled figure that illustrates the optimal transfer pricing policy for the firm if there is no outside market and the firm is a monopoly seller (i.e., there are no other sellers of ground organic coffee). In particular, please show the optimal transfer price that is paid to the roasting division, the optimal retail price charged by the merchandising division, and the optimal amount of coffee sold. b. Suppose poor weather conditions in South American increase the price of raw coffee beans. How does this affect the marginal cost curve for the roasting division? Does this also affect the marginal cost of merchandising (packaging and distribution)? How do the optimal transfer price, retail coffee price, and quantity sold change due to this weather problem?
If New York City imposed a 50 cent tax on soft-drink beverages that contain sugar or high-fructose corn syrup, it would
a. be an excise tax. b. be an income tax. c. reduce tax revenue. d. cause the supply of corn to rise.