Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker.
B) The perfect competitor sells a homogeneous commodity.
C) If an individual firm raises price, it will lose business.
D) The products made by a perfectly competitive firm have no close substitutes.
Answer: D
Economics
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The Taylor rule says that the ________, the lower the federal funds rate
A) higher the volume of bank reserves B) higher the inflation rate C) lower the output gap D) higher the supply of money
Economics
For a given money demand curve, an increase in money supply: a. drives up the real interest rate
b. lowers the opportunity cost of holding money. c. decreases the quantity of money demanded. d. drives down the price level in an economy. e. contracts the total output produced in an economy.
Economics