The Fed raises the federal funds rate when it
A) fears inflation.
B) wants to increase the quantity of money.
C) fears recession.
D) wants to encourage bank lending.
E) cannot change the quantity of money.
A
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Explain who gains and who loses from a tariff and why the losses exceed the gains
What will be an ideal response?
Suppose the major soft drink companies develop vending machines for canned and bottled drinks that can determine your maximum willingness-to-pay for a drink, and the machine charges you that price when you purchase a drink
If this were possible, the consumer surplus in the vended soft drink market would be: A) positive because consumer surplus equals consumer expenditures in this case. B) positive because the market demand curve is perfectly inelastic in this case. C) negative because people are not actually willing to pay their maximum value for the product. D) zero because all surplus value is captured by the seller.