If the economy is in a recession, the Fed could:
A. buy bonds through open market operations to increase spending in the economy.
B. sell bonds through open market operations to increase spending in the economy.
C. increase the discount rate so banks will increase their lending in the economy.
D. increase the reserve requirement to increase confidence in the financial system.
A. buy bonds through open market operations to increase spending in the economy.
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If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sells 6 units, then one can infer the firm is a(n):
A. perfectly competitor. B. monopolistic competitor. C. monopolist. D. oligopolist.
M2 adds together:
A) currency in circulation, checking accounts, savings accounts, travelers' checks, and money market accounts. B) currency in circulation and currency held with foreigners. C) currency in circulation, savings accounts, and held with foreigners. D) currency in circulation, checking accounts, savings accounts, travelers' checks, and currency held with foreigners.
Normal profit is
A) part of the firm's opportunity costs. B) the same as economic profits. C) part of the firm's explicit costs. D) Answers A and B are correct. E) Answers A and C are correct.
Which of the following is true? a. Sellers are willing to supply more of a good or service at every price after costs have increased. b. A fall in the price of a product leads to an increase in the profits earned by sellers
c. A fall in the cost of production leads to a downward movement along the supply curve of a product. d. Sellers are willing to supply more of a good or service at every price after costs have decreased. e. An increase in the price of a product leads to a fall in the profits earned by sellers.