Of the three primary tools the Federal Reserve uses to conduct monetary policy, the tool used most often is
A) open market operations.
B) discount policy.
C) setting reserve requirements.
D) acting as the lender of last resort.
E) check clearing.
Answer: A
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According to the Application, the cultural changes in England allowed individuals to take advantage of
A) the elimination of trade barriers resulting from the formation of the European Union. B) the decrease in population caused by the number of citizens who were leaving for the New World. C) new developments in science and technology. D) the increase in agrarian lifestyles.
If there is a collusive agreement in a duopoly to maximize profit, then the price will
A) equal the marginal cost of production. B) equal the average total cost of production. C) be the same as the price set by a monopoly. D) be the same as the price set by a competitive industry.