The current account must necessarily always be in balance

The Fed conducts open market operations with the primary goal of

A) affecting the federal funds rate. B) affecting the discount rate. C) stabilizing the foreign-exchange market. D) adjusting reserve requirements.

In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:

a. price discrimination is legal in Talisman. b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels. c. consumers in Talisman have similar price elasticities of demand for liquor. d. we assume Best Drinks is a natural monopoly.