If the Fed wished to decrease interest rates, it could
A) increase the reserve requirement or conduct an open market sale.
B) increase the reserve requirement or conduct an open market purchase.
C) decrease the reserve requirement or conduct an open market sale.
D) decrease the reserve requirement or conduct an open market purchase.
D
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The major dilemma facing Boeing and Airbus is the
A) fact that neither will respond to the behavior of the other. B) certainty surrounding the reaction of each firm to the behavior of the other firm. C) fact that if each firm separately tries to maximize its profit, it might wind up with less profit that otherwise. D) competition from other firms that drives their economic profit to zero. E) fact that when they collude to maximize their profit, the other firm's profit might be larger than its profit.
Compared to the profit-maximizing outcome, marginal cost pricing in natural monopoly leads to
a. reduced demand b. higher price c. reduced consumer surplus d. more economic profit e. greater output