When the Fed sets a money supply target,
a. it expects the economy is heading toward recession
b. the demand for money adjusts to the discount rate
c. the legal reserve requirement becomes ineffective
d. the resulting interest rate is set as well
e. the interest rate is determined solely by the position of the demand curve for money
E
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Which of the following is NOT an example of an opportunity cost?
A) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. C) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. D) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
Which of the following would not be considered a synergistic benefit from a merger?
A) an improvement in distribution systems B) economies of scale in production C) decreased cost of capital D) None of the above
Cartel pricing refers to an agreement made by members of the cartel to abide by the cartel's price decision. The outcome most closely resembles that of a
a. price discriminator b. godfather oligopoly c. monopolistically competitive industry d. monopoly e. competitive industry
The assumption of a closed economy
a. applies to the world economy. b. applies to most national economies. c. requires us to assume that the government's budget is always balanced. d. All of the above are correct.