Which of the following policy options would tend to offset each other?
A. An increase in the reserve requirement and an open market sale by the Fed.
B. An increase in the discount rate and a decrease in the tax rate.
C. A decrease in the discount rate and a decrease in the reserve requirement.
D. An increase in the tax rate and a decrease in government spending.
Answer: B
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A commercial bank's last resort for borrowing reserves is from the:
A) discount window. B) central government. C) federal funds market. D) foreign banks.
When a firm produces at the point where MR = MC, the profit that it is earning is considered to be
A) maximum. B) normal. C) above normal. D) Not enough information is provided.
Which of the following are substitute goods?
A) margarine and butter B) peanut butter and jelly C) pizza and beer D) sports utility vehicles and gasoline
A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.2, B has an elasticity of demand of 0.8, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 2.0
The group paying the highest price for the product will be A) A. B) B. C) C. D) D.