In making monetary policy the Fed currently
A. Has adopted the monetarist view.
B. Measures success by meeting fixed targets.
C. Increases the money supply at a fixed rate each year.
D. Focuses on the federal funds rate.
Answer: D
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Which of the following is most likely to benefit from government established price floors in agriculture?
A) large farm owners and corporate farms B) small farmers C) cattle ranchers D) low income farmers
A monopolistically competitive firm maximizes profits when it
A) produces the quantity at which marginal cost equals the market price. B) produces the quantity at which marginal cost equals marginal revenue and uses the demand curve to determine the market price. C) produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal cost. D) produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal revenue.