Answer:
See the explanation for the answers.
Explanation:
1. "Regulate it" is superior because anti trust makes it open to competition and the firm no longer remains a monopoly.
2. A regulated monopoly lower the price it charges from consumers which benefits the consumers because their consumer surplus increases. A regulated monopoly also offers better quality products.
3. Yes, there are redeeming qualities of monopolies.
Advantages of monopoly-
(a) The profits that the monopolist earns can be invested in R and D.
(b) Monopolies can practice price discrimination which can benefit weaker sections of the society.
(c) Monopolies can invest in latest technology which increases productivity and total output of a country.
(d) The government generates revenue from taxing the monopoly firm.
Answer: b. Because of unpredictable changes in the public's desire to hold cash or borrow and banks' desires to hold reserves or lend.
Explanation:
The Fed is able to embark on monetary policy that influences the entire country - and the world to some extent - because they have very strong influence over the money supply of the US$.
This influence is not absolute however because as the old adage goes, "you can lead a horse to water but you can't make him drink". In other words, the Fed can relax(impose) restrictions to make money more(less) available but they cannot force people to borrow(hold) that money.
They can't force banks either to either hold reserves or lend money out because banks are free to impose their own reserve limits on top of those of the Fed.
The correct answer to your questions is letter A. Assets will be decreased.
