When the fed wants to end a recession, they will act to ___ interest rates and ____ the money supply
a. increase; increase
b. increase; decrease
c. decrease; decrease
d. decrease; increase
Ans: d. decrease; increase
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An exponential reserve index assumes
a. That economically recoverable reserves will increase exponentially b. That consumption will increase exponentially c. That the resource lifetime will increase exponentially d. That identified reserves will increase exponentially e. That undiscovered reserves will increase exponentially
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5. B) producing 8 units and charging a price of $15. C) producing 16 units and charging a price of $10. D) producing 20 units and charging a price of $25.