The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that
A) information about the Fed's plans will inevitably be leaked to the public.
B) the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place.
C) the public would eventually figure out what the Fed's policies were, negating the Fed's surprise.
D) competition in the money markets would neutralize the Fed's intervention.
C
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Suppose a share of stock is expected to pay an annual dividend of $10 forever. At a discount rate of 5 percent, the share's market price should be
A) $188.24. B) $200.00. C) $29.60. D) $10.80.
As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a:
A) production quota. B) consumption tax. C) excess profits tax. D) minimum wage.
The total revenue/expenditure rule of elasticity suggests that when price and total revenue go
A. in opposite directions, demand is elastic. B. in opposite directions, demand is inelastic. C. in same direction, demand is elastic. D. to infinity, demand is perfectly inelastic.
Profit is the difference between
A) marginal revenue and marginal cost. B) total revenue and variable cost. C) total revenue and total explicit cost. D) total revenue and total cost.