Refer to the given figure.
If the Federal Reserve wants to set the nominal interest rate at 1 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 900
B. sales; 900
C. purchases; 300
D. sales; 100
Answer: A
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An increase in supply, holding demand constant, will cause:
a. Higher prices and a larger quantity sold b. Lower prices and a larger quantity sold c. Higher prices and a smaller quantity sold d. Lower prices and a smaller quantity sold
In a two-player simultaneous game, if player A has a dominant strategy and player B does not, player B will
A) employ a mixed strategy B) choose his best strategy assuming that player A plays her dominant strategy C) not achieve a Nash equilibrium D) assume that player A does not choose her dominant strategy
Suppose that in a series of paired-choice votes a new park is preferred to a new recreation center and a new recreation center is preferred to street widening. Also suppose that street widening is preferred to a new park. This set of votes is an example
of the: A. principal-agent problem. B. benefits-received principle. C. median-voter model. D. paradox of voting.
To conduct a general equilibrium analysis of a change in consumer preferences away from beef and toward chicken, you must consider
A. changes in the price of resources allocated to the production of beef and chicken. B. changes in the amount of resources allocated to the production of beef and chicken. C. changes in the equilibrium prices and quantities of beef and chicken. D. all of the above