If the current equilibrium output level is above the full-employment output level, the Fed should consider
A. selling government securities, raising the discount rate, and raising the required reserve ratio.
B. selling government securities, lowering the discount rate, and raising the required reserve ratio.
C. buying government securities, lowering the discount rate, and raising the required reserve ratio.
D. buying government securities, raising the discount rate, and raising the required reserve ratio.
A. selling government securities, raising the discount rate, and raising the required reserve ratio.
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Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically?
Suppose that John has many of the same characteristics as the stereotypical mathematician. According to the representative heuristic, this will tend to make people think that:
A. many people are bad at math. B. John is good at math. C. John is bad at math. D. many people are good at math.
When the price level is considered, the value of the multiplier will be less than that suggested by the oversimplified version of multiplier. Why?
What will be an ideal response?
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market, what is the equilibrium price in this market?
a. 7 b. 8 c. 9 d. 10