Which of the following is uncharacteristic of monopolistic competition in the long run?
a. a large number of sellers in the industry
b. zero economic profits
c. price in excess of marginal cost
d. firms have no excess capacity
d
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The effective operation of the U.S. economic system depends upon
A) high profits. B) low profits. C) stable profits. D) the expectation of profits.
The growth of the Eurodollar market is due to the ________ spreads offered by ________
A) narrower, Eurobanks B) narrower, governments C) narrower, domestic banks D) Both A and B
Central banks can increase the money supply by:
a. Buying government securities. b. Selling foreign exchange. c. Raising margin requirements. d. All of the above. e. None of the above.
To stimulate the economy, the government is likely to
A. increase spending. B. restrict trade. C. raise prices. D. decrease expenses