Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.
B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand.
C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand.
D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand.
E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
C
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If hot dog vendors at baseball games want to maximize their total sales revenue, they will have to
A) be willing to experience reduced hot dog expenditure by baseball fans. B) set the price of their hot dogs so that the demand is unit elastic. C) sell as many hot dogs as they can, even if it means lowering price. D) raise their price, even if it means selling fewer hot dogs.
In the figure above, the redistribution from the consumers to the producer if the firm is a single-price, unregulated monopoly rather than a perfectly competitive industry is
A) zero. B) $8.00 per day. C) $16.00 per day. D) $32.00 per day.