The largest liability of the Fed from those on this list is
A. loans to depository institutions.
B. mortgage-backed securities.
C. U.S. Treasury securities.
D. currency outstanding.
Answer: D
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If the real interest rate increases
A. there will be a movement upward along the investment demand curve. B. the investment demand curve will shift to the left. C. the investment demand curve will shift to the right. D. there will be a movement downward along the investment demand curve.
A natural monopoly's output is less if it is regulated with
A) a marginal cost pricing rule than if it is unregulated. B) an average cost pricing rule than if it is unregulated. C) an average cost pricing rule than if it is regulated with a marginal cost pricing rule. D) a marginal cost pricing rule than if it is regulated with an average cost pricing rule. E) More information about the firm's demand is needed to determine how its output depends on what regulation it faces.
The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product
A) is sometimes greater than and other times less than B) equals C) is greater than D) is less than
The U.S. Postal Service uses Ramsey pricing
Indicate whether the statement is true or false