If the Fed desires to contract the money supply, it could do any of the following: sell government bonds, raise the reserve requirement, and raise the discount rate.
Indicate whether the statement is true or false.
Answer: True.
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The perfectly competitive firm's supply curve includes
a. that portion of the marginal cost curve above the minimum point on the average variable cost curve b. its economic profit schedule c. that portion of the marginal revenue curve above minimum average variable cost d. that portion of the average total cost curve above minimum average variable cost e. the firm's effective resource demand curve
The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:
A. average cost curve. B. market demand curve. C. consumer surplus curve. D. market supply curve.
Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A. The shorter the time period for adjustment, the smaller is the price elasticity of supply. B. The longer is the time period for adjustment, the greater is the price elasticity of supply. C. The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms. D. The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.
By promoting its brand name heavily, the monopolistically competitive firm
A. signals its intention to leave the industry. B. earns more profit in the long run. C. signals its long-term intention to stay in the industry. D. guarantees a short run profit.