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If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
a. a decrease in the reserve requirement coupled with an increase in taxes
b. the sale of government securities by the Fed coupled with an increase in the level of government spending.
c. the purchase of government securities by the Fed coupled with a decrease in the level of government spending.
d. the purchase of government securities by the Fed coupled with a tax reduction
e. an increase in the reserve requirement coupled with a tax reduction
f. the purchase of government securities by the Fed coupled with a tax increase
Illustrate what is the value of consumer surplus. Illustrate what is the value of the deadweight loss created by this monopoly.
Compute the firm's profit from part d. Solve algebraically for the profit maximizing quantity (QM) and price (P M). You should get the same answer as in d.
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A "tight money" policy by the Fed.
Illustrate what is the equilibrium quantity of bananas and tomatoes consumed by Marilyn and Chen.
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If workers enroll in a savings plan and are asked to check a box to opt out of it, we are seeing an example of a nudge involving:
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