Assuming an decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant.
b. conduct an open market sale of bonds.
c. reduce the required ratio.
d. both b and c.
e. None of the above
D
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Which of the following is true of a prisoners' dilemma game?
A) A prisoners' dilemma game has multiple Nash equilibria. B) There is no dominant strategy equilibrium in a prisoners' dilemma game. C) The dominant strategy equilibrium in a prisoners' dilemma game is also the Nash equilibrium. D) The prisoners' dilemma game is an extensive-form game.
A good is considered by economists to be inferior if
a. consumers buy less when price rises b. consumers buy less when income rises c. consumers buy less when price falls d. consumers buy more when income rises e. better quality goods exist
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. What is the highest income a family could earn in the workplace before being cut out of the government program?
a. $20,000 b. $15,000 c. $18,750 d. $60,000 e. $10,000
If 1 British pound was equal to $2 in 2005 and $1.75 in 2008, it indicates that the pound appreciated against the dollar in 2008
a. True b. False Indicate whether the statement is true or false