How is the short-run supply curve of a perfectly competitive market different from the long-run supply curve?
The short-run market supply curve is upward rising and is positively related to the price level. The long-run supply curve on the other hand is horizontal as economic profits are zero in the long run.
Economics
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To increase the money supply, the Federal Reserve could
A) decrease income taxes. B) raise the required reserve ratio. C) raise the discount rate. D) lower transfer payments. E) conduct an open market purchase of Treasury securities.
Economics
Due in part to record low interest rates on U.S. Treasury Bonds,
A) investors searching for higher yields bought corporate bonds B) interest rates on corporate bonds rose C) corporations faced higher borrowing costs D) many corporations were at greater risk of defaulting
Economics