Identify the four major instruments of monetary policy.
What will be an ideal response?
The four major instruments of monetary policy are open-market operations, changing the reserve ratio, changing the discount rate on loans that the Federal Reserve makes to financial institutions, and interest on reserves.
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The above figure shows the market for labor. The employer is a monopsony. The firm will maximize its profit by hiring 400 hours of labor because at that point
A) MCL > W. B) VMP > W. C) MCL > VMP. D) MCL = VMP.
Most favored nation (MFN) status means that a country treats another country
A) better than its other trading partners. B) the same as its other trading partners. C) worse than its other trading partners. D) any way it chooses since it is the "most favored nation." E) None of the above.
A positive aspect of monopolies is that they may aid innovation in the marketplace.
Answer the following statement true (T) or false (F)
The period from 1950 to 1975 was a period of
A. very low levels of innovation and low productivity. B. rapidly increasing technological advancements. C. information revolutions. D. few big technological breakthroughs.