In the short run, when prices don't have enough time to change, the Federal Reserve:
A. can influence the level of interest rates in the economy.
B. cannot influence the level of interest rates in the economy.
C. can influence the level of interest rates in the economy but generally will not because it would be destabilizing.
D. can only affect the amount of money in the economy.
Answer: A
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According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
All of the following are true regarding transfer prices except which one?
A) Transfer prices can affect the taxes a firm must pay. B) The transfer price is the internal firm price on an input that input-producing division charges the input-using division. C) Transfer prices occur when a firm engages in divestiture. D) Transfer prices are an accounting entry for the within-firm price of an input.
When firms have market power, it means that they:
A. can noticeably affect the market price. B. have no control over the market price. C. can noticeably affect the market quantity available for sale. D. do not noticeably affect the market quantity offered for sale.
Identify the correct statement from the following
a. Good faith bargaining implies the seller will never decrease the price for a particular buyer. b. Distrust is the norm when electricity producers negotiate a deal to exchange power by misrepresenting their costs. c. Poker is the exception where norms do not come into play. d. Good faith bargaining norms vary among different types of transactions.