If the Fed decides to keep interest rates low when there is a large budget deficit, economists conclude that the Fed is
A. monetizing the debt.
B. neutralizing the effects of the deficit.
C. correcting the deficit for inflation.
D. resisting the effects of the deficit.
Answer: A
Economics
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A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
A) -0.2. B) -0.8. C) -1.25. D) -5.0.
Economics
Banks earn a profit on the difference between: a. the interest charged from depositors and the interest offered to borrowers. b. the interest charged on loans and the interest paid on deposits
c. the deposit and loan balances. d. liabilities and deposits. e. dividends and interest.
Economics