In the money market, in the short run in order to decrease the nominal interest rate, the Fed must
A) increase the discount rate.
B) increase the quantity of money.
C) decrease the quantity of money.
D) decrease the demand for money.
E) directly lower the interest rate and not change either the demand for money or the supply of money.
B
Economics
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One of the weaknesses in pursuing the objective of profit maximization is that it ignores
A) the timing of cash flows. B) the time-value of money concept. C) the riskiness of cash flows. D) All of the above
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Given a price elasticity of demand of -0.9, a decrease in price will
A. decrease quantity. B. increase total revenue. C. reduce total revenue. D. leave total revenue unchanged.
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