The supply curve of money is horizontal at the market interest rate.
a. true
b. false
Ans: b. false
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Tele-Com, Inc., the nation’s largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
A. demand curve for the Disney Channel shifted to the right. B. supply curve of the Disney Channel shifted to the left. C. demand for the Disney Channel is elastic in this price range. D. demand for the Disney Channel is inelastic in this price range.
A firm that can determine the price-output combination in order to maximize profit is known as a
A) price searcher. B) price taker. C) demand searcher. D) cost taker.
Between 1970 and 2000, if the Fed had tried to hit the money growth targets:
A. the interest rates would have likely been more stable. B. the federal funds rate would have changed often and by large amounts. C. the economy would have likely experienced very high inflation. D. the economy would have likely experienced very high inflation but the interest rates would have likely been more stable.
Which of the following economic realities helps managers better assess economic? environments?
a. system complexity b. market dynamism c. market interdepende d. All of the above.