Which of the following values of the Lerner Index indicates the greatest amount of market power?

The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.

At the profit-maximizing level of output, marginal profit

A) is also maximized. B) is zero. C) is positive. D) is increasing. E) may be positive, negative or zero.

There is a negative relationship between two variables if:

A. they move in opposite directions. B. they move in the same direction. C. one variable changes and the other does not. D. neither variable moves.

When the reserve requirement is increased:

A. required reserves are changed into excess reserves. B. the excess reserves of member banks are increased. C. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves. D. the excess reserves of member banks are reduced.