Which of the following Fed actions would increase the level of total bank reserves?

a. buying securities from individuals or businesses
b. selling securities to commercial banks
c. reducing reserve requirements
d. raising the discount rate


a. buying securities from individuals or businesses

Economics

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Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $50, and in the case of tails, the individual loses $100, the expected value of the gamble changes to:

A) $25. B) -$25. C) $50. D) -$50.

Economics

Using the fact that the standardized variable Z is a linear transformation of the normally distributed random variable Y, derive the expected value and variance of Z

What will be an ideal response?

Economics

After massive promotion of Justin Bieber's latest music album, the producers reacted by raising prices for his albums. This implies that promotion expenditures made the album demand

a. Elastic b. Unitary elastic c. Vertical d. Inelastic

Economics

When there is a choice between the consumption of bundle X and bundle Y, the opportunity cost of consuming bundle X is bundle Y

a. True b. False Indicate whether the statement is true or false

Economics