For many years after the Great Depression, economists believed a ...

[melina_rosy]

For many years after the Great Depression, economists believed a central bank policy of increasing bank reserves in response to a recession would be
 
  A) largely ineffective.
  B) the opposite of what the circumstances required.
  C) useless unless it also raised interest rates.
  D) useless unless it was accompanied by declining prices.

Question 2

A price searcher faces the following demand curve: At 9, 8, 7, and 6, the quantity demanded is 10, 20, 30, and 40 units, respectively. If the firm's marginal cost is 50 at any level of output, it would maximize net revenues by
 
  A) producing 10 units and charging 9.
  B) producing 20 units and charging 8.
  C) producing 30 units and charging 7.
  D) producing 40 units and charging 6.
  E) charging 50 plus markup.

[LegendaryAnswers]

Answer to Question 1

A

Answer to Question 2

C

[melina_rosy]

Thank you

[LegendaryAnswers]

No problemo