Fixed costs do not vary as output changes.
Answer the following statement true (T) or false (F)
True
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Contrast the actions the central bank of a country would take to increase the quantity of money in an economy with the actions it would take to produce the opposite effect
Like the human body, an economy is made up of many small, specialized, interactive parts; like blood circulates in a human body, money circulates through an economy, providing necessary resources for both households and firms
Indicate whether the statement is true or false
Which of the following Fed actions will decrease the money supply?
A) an open market purchase of Treasury bills B) an increase in the required reserve ratio C) a decrease in the discount rate relative to the federal funds rate D) all of the above E) none of the above
The larger the coefficient of price elasticity of demand for a product, the:
A. larger the resulting price change for an increase in supply. B. more rapid the rate at which the marginal utility of that product diminishes. C. less competitive will be the industry supplying that product. D. smaller the resulting price change for an increase in supply.