In Figure 15.3, the Fed can change the equilibrium interest rate from 2 percent to 6 percent by
A. Increasing the amount of coins in circulation.
B. Decreasing the reserve requirement.
C. Raising the discount rate.
D. Buying bonds in the open market.
Answer: C
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The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to
A) none of the points that are illustrated. B) point b. C) point c. D) point d.
Compared to the profit-maximizing equilibrium of a natural monopoly, a price cap regulation ________ the firm's price and ________ the firm's output
A) raises; decreases B) lowers; increases C) raises; increases D) lowers; decreases
Explain the principal–agent problem in business
Please provide the best answer for the statement.
Using the official measure of unemployment, which of the following would NOT be counted as unemployed?
A) a person who is not working but who has tried to find a job in the past week B) a person who is waiting to be called back to a job after having been laid off C) a person who performs traditional housework and does not work outside the home for pay D) a person who is waiting to start a new job in the next 30 days