If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur, then the expected value is

If the economy is inflationary, the Fed would most likely:

a. increase bank reserves by raising the discount rate. b. increase bank reserves by buying government securities c. decrease bank reserves by lowering the discount rate. d. decrease bank reserves by selling government securities. e. decrease bank reserves by lowering the legal reserve requirement.

Which of the following is the long-run outcome for monopolistic competition?

A) MR > MC. B) P > ATC > MC. C) P = ATC. D) P > ATC.