The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is one of the ways the Fed responded?
A) The Fed banned investment banks from obtaining discount loans.
B) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.
C) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves.
D) The Fed helped Citibank to acquire General Motors and Chrysler.
Answer: B
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Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's demand at a price of $60?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) 150 B) 100 C) 200 D) 50
Farms with sales of more than $250,000 account for __________ percent of U.S. agricultural sales.
Fill in the blank(s) with the appropriate word(s).
If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
a. yield a profitable rate of return. b. are most heavily subsidized by the government. c. result in the production of the largest possible output regardless of value to consumers. d. reduce the value of resources and retard wealth accumulation.
Suppose that the price of bread rises. This rise could be the result of
A) a decrease in the supply of bread. B) an increase in the supply of bread. C) a decrease in the demand for bread. D) Both answers A and C are correct. E) Both answers B and C are correct.