Refer to the scenario above. The optimal strategy for Rachel is to bid a price:
A) above her willingness to pay.
B) equal to half the amount she is willing to pay.
C) equal to 5/6 times her willingness to pay.
D) up to her willingness to pay.
D
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List and explain factors that determine the size of the expenditure multiplier in the expenditure model when prices are constant
What will be an ideal response?
Deflation
a. is bad for lenders b. is good for borrowers c. is high inflation d. alone could boost people's real incomes e. explains why personal bankruptcies decline
Which of the following is correct concerning the FOMC?
a. the members of the Board of Governors have the majority of the votes b. the New York Federal Reserve Bank District President is always a voting member c. all Federal Reserve Bank presidents attend the meetings d. All of the above are correct.
For the purposes of calculating GDP using the expenditure approach, which of the following is not included in the government purchases account?
A. The government's purchase of a computer B. The payroll of the federal government C. Government purchases of pencils D. Welfare payments to the poor