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
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The prisoner's dilemma illustrates
A) how oligopolists engage in implicit collusion under strategic situations. B) how cooperation in strategic situations leads to the economically efficient market outcome. C) why firms will not cooperate if they behave strategically. D) why firms have an incentive to cheat on agreements.
If a country had a nominal GDP of $753 million, and the GDP deflator was 110, what is the real GDP?
a. $685 million b. $828 million c. $836 million d. $863 million
Policymakers may be uncertain about the structure of the economy because
A. initial releases of data may be less accurate than later data releases. B. they are not aware of modern macroeconomic modeling techniques. C. they don't know the predominant source of shocks to the economy. D. they don't know how shocks affect people's expectations.
The parity ratio initially stood at 0.50. Then after several years, the prices received by farmers doubled while the prices they paid tripled. This will bring the parity ratio to:
A. 0.25 B. 0.33 C. 0.75 D. 0.80