A firm facing a horizontal demand curve:
a. cannot affect the price it receives for its output
b. is unlikely to price its goods below market price.
c. faces a perfectly elastic demand curve for its product.
d. is characterized by all of the above.
d
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Which of these statements best describes a flow variable?
a. An economic variable that measures something at a particular point in time b. An economic variable whose value is determined by the market c. An economic variable that is measured per unit of time d. An economic variable whose value shows no change over time e. An economic variable that remains static when other related variables change
If the Federal Reserve is engaging in open market operations designed to expand the money supply, it is probably
a. selling government securities to banks. b. selling government securities to the public. c. buying government securities from the public. d. encouraging banks to exchange their Fed deposits for currency.