The Fed could sell bonds in the open market in an effort to keep interest rates constant when
A. The discount rate increases.
B. The reserve requirement increases.
C. Money demand decreases.
D. Money demand increases.
Answer: C
Economics
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Monopolies can make an economic profit in the long run because of
A) rent seeking by competitors. B) the elastic demand for the monopoly's product. C) the cost-savings gained by the monopoly. D) barriers to enter the monopoly's market.
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The actual division of the burden of a tax is called
A) tax incidence. B) tax dispersion. C) tax credit. D) excess burden.
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