The Fed:
a. has little control over the money supply.
b. serves as the central bank for the United States.
c. often uses a mix of lower taxes in its fiscal policy.
d. ensures commercial bank profitability.
b
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Explain why fiscal policy actions typically work with a lag
Suppose a perfectly competitive firm and a monopolist are both charging $5 for their respective products. From this, one can infer that:
A. the competitive firm is charging too much, and the monopolist is charging too little. B. the marginal benefit from selling an additional unit of output is less than $5 for both firms. C. the marginal benefit from selling an additional unit of output is $5 for the competitive firm and less than $5 for the monopolist. D. the marginal benefit from selling an additional unit of output is $5 for both firms.