In 1991, the Federal Reserve lowered the reserve requirement from 12 percent to 10 percent. Other things the same this should have
a. increased both the money multiplier and the money supply.
b. decreased both the money multiplier and the money supply.
c. increased the money multiplier and decreased the money supply.
d. decreased the money multiplier and increased the money supply.
a
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Refer to the payoff matrix below. Which of the following is the pure -strategy Nash Equilibrium?
A) Set High Price/Set Low Price
B) Set Low Price/Set High Price
C) Set High Price/Set High Price
D) Set Low Price/Set Low Price
Well functioning financial markets promote what?
A) inflation.
B) deflation.
C) unemployment.
D) growth.
What would happen in an economy if total planned production exceeded total planned real expenditures?
A. Inventories would accumulate, and firms would tend to lower prices. B. Inventories would be depleted, and firms would tend to raise prices. C. Inventories would accumulate, and firms would tend to raise prices. D. Inventories would be depleted, and firms would tend to lower prices.
The U.S. Steel case of 1920 and the Alcoa case of 1945 dealt with which antitrust issue?
A. To what extent should firms be limited in buying plant and equipment from other firms? B. Should an industry be judged by its behavior or by its structure? C. Should the steel and aluminum industries be considered natural monopolies? D. Should mergers be permitted between firms in closely related industries?