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If the Federal Reserve System wanted to tighten the money supply, the most powerful combination of actions would be to
a. raise reserve requirements, lower the discount rate, and buy government securities
b. raise reserve requirements, lower the discount rate, and sell securities
c. lower reserve requirements, raise the discount rate, and buy government securities
d. raise reserve requirement, raise the discount rate, and sell government securities
Explain why the short-run aggregate supply curve is not vertical, but the long-run aggregate supply curve is vertical.
Draw a supply/demand diagram of the market for "loanable funds" in the U.S. Use the "interest rate" as the "price" of loanable funds on your diagram.
Assume you ran the only bakery in town. Further suppose that it was currently very profitable. A. What things might you consider if you wanted to ensure that you continued to enjoy the same success in the future?
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%. If electricity can be purchased for costs of $0..
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather wi..
two important policy goals of the government and the fed are to keep unemployment and inflation low while at the same
What is the CPI (Consumer Price Index) and what significance does it hold in regards to goods and services? Please explain in detail.
Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry-deterrent threat by firm A to lower the price not credible to firm B (c) What could firm A do to make its threat credible without building excess..
State whether you agree or disagree with the following statement and explain why: a. When the real economy expands (Y rises), the demand for money expands. As a result households hold more cash and the supply of money expands. b) Inflation a rise i..
What is the best response function of firm
andy and beth are neighbors in a small duplex. in the evenings after work andy enjoys practicing the tuba while beth
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)?
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