Federal Reserve policy tools include all of the following EXCEPT
A) desired reserve ratios.
B) required reserve ratios.
C) the discount rate.
D) open market operations.
A
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Unlike business, government can coerce individuals to paying higher prices through taxes
Indicate whether the statement is true or false
Suppose that the cost of installing an overhead pedestrian walkway in a college town is $150,000 . The walkway is expected to reduce the risk of fatality by 1.5 percent, and the cost of a human life is estimated at $10 million. The town should
a. install the walkway because the estimated benefit is twice the cost. b. be indifferent between installing and not installing the walkway because the estimated benefit equals the cost. c. not install the walkway, since the cost is twice the estimated benefit. d. install the walkway, since the cost of even a single life is too great not to take action.
Considering both the Keynesian and the aggregate demand-supply frameworks, if households as a group experience an increase in wealth at a given price level, then the TE curve shifts __________, the AD curve shifts __________, and Real GDP __________
A) downward; leftward; decreases B) downward; rightward; decreases C) upward; rightward; increases D) upward; leftward; increases
Price makers always have to deal with ______.
a. a segmented demand curve b. a horizontal demand curve c. an upward sloping demand curve d. a downward sloping demand curve