Contractionary monetary policy
A. tends to lead to a depreciation of a nation's currency.
B. usually has no effect on a currency's exchange value.
C. tends to lead to an appreciation of the currencies of other nations.
D. tends to lead to an appreciation of a nation's currency.
Answer: D
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Arnold Harberger was the first economist to estimate the loss of economic efficiency due to market power. Since Harberger's findings were published, other researchers have studied this same issue. How do the results of these researchers compare to Harberger's results?
A) The other researchers reached conclusions similar to Harberger's; namely, the loss of economic efficiency due to market power is about 1 percent of the value of production in the United States. B) The other researchers reached conclusions different from Harberger's; namely, they found that the loss of economic efficiency due to market power is only about 1 percent of the value of production in the United States, much less than Harberger's estimate. C) The other researchers reached conclusions different from Harberger's; namely, the loss of economic efficiency due to market power is about 10 percent of the value of production in the United States, significantly greater than Harberger's estimate. D) The other researchers reached conclusions similar to Harberger's; namely, the loss of economic efficiency due to market power is about 10 percent of the value of production in the United States.
Suppose that a monopolist is producing an output level of 10,000 units. At that output level, both MR and MC equal $5, AR equals $7, and ATC equals $6. Which of the following statements is correct?
a. the firm is maximizing its total profit, which equals $10,000. b. total cost equals $60,000. c. total revenue equals $70,000. d. All of these.
The Board of Governors of the Fed:
A. consists of seven state governors who represent the views of individual states in monetary policy. B. consists of seven members appointed by the President of the United States, who together act as the key decision-making entity for monetary policy. C. consists of 13 large commercial bank CEOs who represent the interests of the private banking sector in monetary policy. D. is the primary monetary group responsible for buying and selling bonds designed to change reserves in the banking system. The Board of Governors is the key decision maker for monetary policy.
Before the year 2000, the most prolonged departure from the long-term growth path for the United States occurred during
A. The 1980s. B. World War II. C. The years following World War II. D. The Great Depression.