What is the policy used most by the Fed to change the money supply?
(A) Changes in the money creation policy.
(B) Changes in the discount rate.
(C) Open market operations.
(D) Changes in the reserve requirements.
Ans: (C) Open market operations.
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The theory of perfect competition is built on several assumptions, including that
A) the individual firm can affect the price of the product it sells. B) any firm can easily enter or leave the industry. C) the individual firm can influence demand by advertising. D) there are few producers of an identical product. E) each firm must earn economic profits to remain in the industry.
Subsidies for silver, the Bland-Allison Act of 1878, and the Silver Purchase Acts of 1890 and 1933 all provide examples of government programs
(a) based on careful analysis of benefits relative to costs. (b) designed to redistribute income from the rich to the poor. (c) that reflect the political attractiveness of special-interest issues. (d) that promote the general welfare.