Anti-competitive policies are often enforced by government because the public seems to think price cutting by large sellers
A) creates monopolies by reducing competition.
B) increases competition among sellers.
C) raises prices at the wholesale but not at the retail level.
D) reduces the elasticity of margins.
Question 2
A purchase of government bonds from the public by the Federal Reserve Banks
A) adds to the money stock.
B) has the effect of pulling wealth and therefore money out of the private sector.
C) increases the money stock directly and simultaneously increases commercial bank reserves.
D) puts additional reserves into the commercial banking system.
E) reduces the wealth of the public.
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