If the Federal Reserve is interested in conducting contractionary policy, what types of policies should it consider?
What will be an ideal response?
Examples of contractionary monetary policy include open market sales, increasing the reserve requirements for banks and increasing the discount rate. In all three instances, the money supply decreases.
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According to economists, when two people make exactly the opposite decision
A) one of them is acting irrationally. B) each person evaluates the situation according to his/her individual self-interest. C) one of them is acting out of spite. D) one of them should compromise.
Under conditions of oligopoly, economies of large-scale production mean that: a. firms are able to sell all of the output they desire
b. it is difficult for a firm to determine its profit-maximizing price and output. c. large firms would find it more profitable to break up into smaller production units. d. small firms are at a disadvantage in competing with relatively large firms.