In the United States, monetary policy is the responsibility of the Federal Reserve Board of Governors and the Federal Open Market Committee
a. True
b. False
Indicate whether the statement is true or false
True
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A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?
A. $4 B. $7 C. $6 D. $12
When there is a capacity constraint
A) firms face sunk costs when deciding whether or not to expand. B) consumers will avoid the producer and go with a firm that has extra capacity. C) firms are not maximizing their profits during high season. D) firms can use peak-load pricing to increase profits during periods of high demand.
Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.
An increase in the budget deficit causes domestic interest rates
a. and net capital outflow to rise. b. to rise and net capital outflow to fall. c. to fall and net capital outflow to rise. d. and net capital outflow to fall.