Which of the following options would the Fed pursue if it wanted to increase the supply of money in the economy?
a. lowering reserve requirements
b. raising the discount rate
c. selling bonds
d. increasing the interest rate paid on reserves
a. lowering reserve requirements
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q383g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />Which of the following statements is correct?
A. OPEC's dominant strategy is to cheat on the agreement.
B. OPEC's dominated strategy is to cheat on the agreement.
C. OPEC's dominant strategy is to abide by the agreement.
D. OPEC does not have dominant strategy.
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, an increase in the currency-deposit ratio to 50% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.5 to 2.8 B) decrease from 2.8 to 2.5 C) increase from 2.33 to 2.8 D) decrease from 2.8 to 2.33
According to the above table, a surplus exists when
A) the price is $1 per unit. B) the price is $2 per unit. C) the price is $3 per unit. D) the price is greater than $3 per unit.
Americans worked less than _____ hours in the year 2008, while German laborers worked less than _____ hours.
Fill in the blank(s) with the appropriate word(s).