Which of these situations is most likely to cause the Fed to introduce a tight money supply?
(A) A recession has reduced aggregate demand and increased unemployment.
(B) The economy is expanding quickly and inflation is a concern.
(C) The economy is prosperous with relatively low inflation and low unemployment.
(D) The federal government passes a new budget with a large deficit.
Ans: (B) The economy is expanding quickly and inflation is a concern.
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A firm can fund an expansion of its operations by
A) paying dividends. B) loaning money. C) buying stock. D) issuing bonds.
In the long run, the output of a monopolistically competitive firm
a. exceeds that of an otherwise similar perfectly competitive firm b. is less than that of an otherwise similar perfectly competitive firm c. is at the point at which LRAC is minimized d. equals that of an otherwise similar perfectly competitive firm e. is less than that of an otherwise similar monopolist