When the Federal Reserve sells bonds as a part of a contractionary monetary? policy, there? is:
A. A decrease in the money supply and a decrease in interest rate
B. A decrease in the money supply and an increase in interest rate
C. An increase in the money supply and a decrease in interest rate
Ans: B. A decrease in the money supply and an increase in interest rate
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Monopolistic competition is similar to
a. perfect competition, in that firms face downward-sloping demand curves and earn zero long-run economic profit b. pure monopoly, in that firms face downward-sloping demand curves and can earn economic profits both in the short run and in the long run c. perfect competition, in that firms face perfectly elastic demand curves and earn zero long-run economic profit d. pure monopoly, in that firms can earn economic profits both in the short run and in the long run, and similar to perfect competition, in that firms face perfectly elastic demand curves e. pure monopoly, in that firms face downward-sloping demand curves, and similar to perfect competition, in that long-run economic profit is zero
In early 1996, the upper Midwest suffered record cold, with wind chills of fifty degrees below zero or worse. Yet, grocery stores stocked fresh citrus fruit (obviously not grown locally). Why did grocers stock the fruit?
a. the desire for profit b. concern for their neighbors c. the need to dispose of excess production d. government orders to distribute fruit e. All of the above are correct.