Which of the following is a characteristic of pure monopoly?
A. Close substitute products.
B. Barriers to entry.
C. The absence of market power.
D. "Price taking."
Answer: B
Economics
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Targeting the federal funds rate allows the Fed some ability to control bank reserves and thus the money supply. Explain how each of the following tools allows the Fed to fine-tune its control of bank reserves
a. Conducting open market operations b. Changing the discount rate c. The ability to pay interest on reserves d. The Term Deposit Facility
Economics
Unlimited liability explains why
a. bondholders don't buy stock b. many proprietors are reluctant to expand their businesses c. banks are reluctant to lend money to corporations d. sole proprietors prefer not to incorporate e. many businesses go bankrupt
Economics