Exhibit 20-4 Aggregate demand and supply model
?
In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?
A. raise the legal reserve requirement
B. lower the discount rate
C. increase the federal funds rate
D. sell government securities
Answer: B
You might also like to view...
The table above shows Danielle's utility from ice cream and romance novels
a) What is Danielle's marginal utility from the 4th novel? b) The price of ice cream is $5 per gallon and a novel is $10. If Danielle's budget for these two goods is $50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels? c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
A tariff is a tax imposed by a government on
A) imports. B) exports. C) services. D) luxury items.
Non-tariff barriers are tools that countries use to restrict trade such as regulatory or legal barriers or slow processing of goods at borders.
Answer the following statement true (T) or false (F)
In this graph for negative externalities in production, the efficient equilibrium point is at ______.
a. point A
b. point B
c. P1 and Q1
d. P2 and Q2