Which of the following actions is most likely to lead to an increase in the money supply?
A) Fed purchases of government securities
B) an increase in the required reserve ratio
C) an increase in the discount rate
D) none of the above
A
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Use the following graph to answer the next question.
If the initial equilibrium interest rate was 5% and the money supply increased by $100 billion, then the new interest rate would be
A. 1%. B. 2%. C. 3%. D. 4%.
Asymmetric information refers to a situation where people who pose the greatest risk to insurers are the ones who buy insurance
Indicate whether the statement is true or false
Consider the following data: Price of A Quantity Demanded of A $5 6 $4 10 The absolute value of the price elasticity of demand for product A is
A) 0.44. B) 1.80. C) 0.56. D) 2.25.
Compensation of employees is the largest component of GDP using the income approach
a. True b. False Indicate whether the statement is true or false