Compared to the other tools the Fed uses to change the money supply, the discount window is used:
A. more often than open market operations and the reserve requirement.
B. less often than open market operations, but more often than the reserve requirement.
C. about the same as open market operations, but more often than the reserve requirement.
D. more often than open market operations, and about the same as the reserve requirement.
Answer: B
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The main purpose of industrial regulation is to:
A. lower price to marginal cost. B. lower price to average total cost such that the firm earns a fair return. C. break monopolies into competing firms. D. reduce X-inefficiency.
A teenaged babysitter is similar to a firm in a perfectly competitive industry in that, for both
A) fixed costs are lower than variable costs. B) there are many other suppliers of similar goods or services. C) the implicit costs of production exceed the explicit costs of production. D) average costs of production do not change when their industry expands.