Which of the following statements is most correct?
A. The Fed can control the size of the monetary base but not the price of its components.
B. The Fed can control either the size of the monetary base or the price of its components.
C. The Fed can control the amount of reserves, but cannot control the monetary base.
D. The Fed can control the make up of the monetary base, but cannot affect the market interest rate.
Answer: B
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The figure above shows Clara's demand for CDs. The price for a CD is $15. Which statement is TRUE?
A) When Clara buys 6 CDs, she receives $15 of consumer surplus on her 6th CD. B) When Clara buys 6 CDs, she receives a total of $15 of consumer surplus. C) When Clara buys 6 CDs, she receives a total of $30 of consumer surplus. D) When Clara buys 6 CDs, she receives a total of $45 of consumer surplus.
What is the Sherman Act and what is its purpose?
What will be an ideal response?