During a period of inflation, the Fed is likely to
a. sell government bonds to banks in order to reduce the amount of loanable funds in the market
b. buy government bonds from banks in order to reduce the amount of loanable funds in the market
c. raise taxes in order to reduce the money supply
d. cut the legal reserve requirement in order to reduce the amount of excess reserves banks have to loan out
e. cut the discount rate in order to increase the affordability of loanable funds
A
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output, the marginal external cost per ton is
A) zero. B) $30. C) $80. D) $110.
A perfectly competitive firm earns a profit when price is
A) equal to minimum average variable cost. B) above minimum average total cost. C) equal to minimum average total cost. D) equal to minimum average fixed cost.