Economic profit of a decision in question equals
A. accounting profit of the decision in question + its opportunity cost.
B. accounting profit of the decision in question ? accounting profit of the best available alternative.
C. accounting profit of the decision in question + its opportunity cost + overheads.
D. its opportunity cost + accounting profit of the best available alternative.
Answer: B
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Refer to Table 26-4. Suppose the following table illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
If the Fed wants to keep real GDP at its potential level in 2017, should the Fed use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?
Who owns the Fed?
a. The federal government. b. The states. c. The District Federal Reserve Banks. d. All banks. e. Member banks.