The appropriate monetary policy in the event of a recessionary gap would be to
A) raise the required reserve ratio.
B) increase the difference between the federal funds rate and the required reserve ratio.
C) engage in an open market purchase of U.S. government securities.
D) increase the difference between the discount rate and the federal funds rate.
C
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Give 3 reasons for deviations from IRP. Do these deviations indicate unexploited profit opportunities for investors?
What will be an ideal response?
If there are ten firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________.
A) 10,000 B) 1,000 C) 100 D) 1,500
Arguably the simplest voting system is:
A. instant runoff voting. B. pair-wise majority voting. C. first-past-the-post voting. D. approval voting.
Which of the following is a store of value?
a. Passbook savings deposit b. Federal Reserve notes c. Debit card d. Each of the answers is a store of value.