A reduction in the ratio of the money supply to GDP is

In a small town the level of demand is capable of supporting only two gas stations. This market is

A) a natural duopoly. B) perfectly competitive because a homogeneous good is being sold. C) operating as if it was a monopoly. D) an example of monopolistic competition.

If congress and the federal reserve bank both wished to encourage growth of productive capacity in an economy already close to full employment, it would be most appropriate to

a) increase interest rates by buying bonds on the open market b) use a tight money policy to decrease government spending c) reduce taxes on consumption, increase income taxes, and increase government transfer payments d) reduce interest rates by engaging in open market operations and raise taxes on personal income e) increases capital gains taxes and decrease the money supply