Consider the same monopoly situation as in the previous question. The deadweight loss associated with this monopoly is
a. 966
b. 1,058
c. 2,484
d. 3,680
b
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The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits ________.
A. of commercial banks are unchanged, but their reserves decrease B. and reserves of commercial banks both decrease C. of commercial banks are unchanged, but their reserves increase D. and reserves of commercial banks are both unchanged
If consumption is greater than disposable income, it follows that
A) interest rates are rising. B) the budget deficit is shrinking. C) saving is negative. D) the multiplier is inoperative. E) none of the above
When the money market is drawn with the value of money on the vertical axis, as the price level increases the quantity of money
a. demanded increases. b. demanded decreases. c. supplied increases. d. supplied decreases.
If the Fed wishes to slow economic activity, it might actively pursue:
A. contractionary fiscal policy. B. expansionary monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.