To reduce the federal funds rate, the Fed can:
A. buy government bonds from the public.
B. increase the discount rate.
C. increase the prime interest rate.
D. sell government bonds to commercial banks.
A. buy government bonds from the public.
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When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?
A) thinking at the margin B) making assumptions C) isolating variables D) all of the above
Supply shows
a. the quantity offered for sale at every possible price. b. the quantity people will buy at every possible price. c. the changes in quantity. d. how price changes when people buy more.
Under what conditions can a monopolist have potentially lower costs and possibly charge a lower price than would exist if the market were competitive?
a. when the monopolist operates on the inelastic portion of the demand curve b. when the monopolist is a profit maximizer rather than a revenue maximizer c. when substantial diseconomies of scale are present d. when substantial economies of scale are present
The Medicare pay-as-you-go system is jeopardized by:
a. the changing demographics of the U.S. population with an increasing percentage over the age of 65. b. an overly generous fee schedule that pays physicians more than private insurance for most procedures. c. the rising costs of long-term care. d. allowing physicians to balance bill their patients. e. a reliance on the premiums paid by the elderly themselves to fund a majority of the total cost of the system.