Reference no: EM131388811
1) To decrease aggregate demand, the Federal Reserve would
a) sell Treasury bonds.
b) increase the money supply.
c) buy Treasury bonds.
2) When banks find themselves with excess reserves, they typically
a) encourage the Federal Reserve to raise the required reserve ratio.
b) lend out new loans.
c) sell Treasury bonds to Federal Reserve.
3) When the Federal Reserve buys Treasury bonds from the public in the open market
a) the money supply contracts.
b) the money supply expands.
c) the demand for money expands.
d) there is no change in the money supply.
4) if the Fed increases the discount rate,
a) banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates.
b) it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans.
c) it will then increase the required reserve ratio as well.
Pareto-optimal solution-nash-courant solution
: Using one of the payoff matrices shown in your book, show me the Pareto-optimal (collusion) solution and the Nash-Courant (non-collusion) solution. Use the numbers to show the Nash equilibrium.
|
What is budget deficit-how much must the treasury borrow
: Suppose the U.S. government begins this year with no debt. The expenditures listed below do not include interest on debt. What is the budget deficit? How much must the Treasury borrow? What is the budget deficit? How much must the Treasury borrow? Wh..
|
Recommend installing the automated assembly line
: Fast PC, Inc., is considering a new automated assembly line to automate assembly of tablets. The new line can be installed for $12,450,000 today and will have a life of 7 years until technological obsolescence. Based on net present value estimate, do..
|
In the profit-maximizing monopolist sets it price
: In the profit-maximizing monopolist sets it price:
|
To decrease aggregate demand
: To decrease aggregate demand, the Federal Reserve would. When banks find themselves with excess reserves, they typically. When the Federal Reserve buys Treasury bonds from the public in the open market.
|
What are the necessary elements of marketing plan
: Tesla Motors is an electric vehicle manufacturer that trades on the NASDAQ stock exchange. It produces electric cars, electric powertrain components and lithium-ion batteries. What are the necessary elements of a marketing plan? What is the role of m..
|
Strikes will be less successful
: Strikes will be less successful if…
|
Calculate the monetary multiplier
: Demand for money holdings are. One result of a successful contractionary monetary policy would be. Assume the reserve ratio is 20 percent and Federal Reserve’s buys $4 million of Treasury bills from the public. The public places these new deposits in..
|
Give midwesterners the right to pollute the air
: Midwestern power companies generate much of their electricity by burning coal. Tall smokestacks, required because of concerns about local pollution, carry the sulfurous smoke high into the atmosphere. Give northeasterners the right to clean air. Give..
|