Refer to Figure 26-14. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease income taxes
C) buy Treasury bills D) increase the required-reserve ratio
C
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Define the following characteristics of business cycles: recurrence and persistence
What will be an ideal response?
The federal agency that ensures that potential security purchasers are well informed is the
A) FCC. B) FTC. C) NRC. D) SEC.
Inflation ________
A) is more costly when it is anticipated than when it comes as a surprise B) makes it more difficult to plan for the future, whether it is a surprise or not C) induces distortions in the money and goods market but not the labor market D) all of the above E) none of the above
The prisoner's dilemma:
A. can be summarized in a payoff matrix. B. can involve two players. C. leads to a less-than-ideal outcome for all players. D. All of these statements are true.