Author Question: The sale of 1 billion of securities to a bank or some other business by the Fed is an example of ... (Read 88 times)

Jramos095 · **on:** Jun 29, 2018

The sale of 1 billion of securities to a bank or some other business by the Fed is an example of

A) a last resort loan.
B) a multiple contraction of the quantity of money.
C) an open market operation.
D) a change in the required reserve ratio.

Question 2

When a firm is considered to be a price taker that means that the firm

A) can charge any price that it wants to charge, that is, take any price it wants.
B) pays a fixed price for all of its inputs.
C) will accept (take) the lowest price that its customers offer.
D) cannot influence the market price of the good that it sells.