World War II (1941–45) bond sales
(a) were successful and purchased primarily by banks, not private individuals.
(b) were successful and purchased primarily by private individuals, not banks.
(c) were successful but eventually led to inflation when bondholders decided to
cash them in or sell them to the Fed.
(d) were not successful.
(c)
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A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is
A) shut down, as TC > TR. B) reduce output to reduce the cost of production. C) increase output to reduce the per unit cost of production. D) continue to produce because loss is less than TFC.
Central banks can increase the money supply by:
a. Buying government securities. b. Selling foreign exchange. c. Raising margin requirements. d. All of the above. e. None of the above.