Banks in Richland charge an interest rate of 4% for overnight loans to each other. How will this rate change if the central bank of Richland engages in open market operations to purchase bonds?
What will be an ideal response?
If the central bank of Richland purchases government bonds from other banks, the quantity of bank reserves deposited at the Fed will increase. This will lower the interest rate that banks charge each other for overnight loans. This will enable banks to make more loans.
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q217g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If one store is located at A and the other store is located at B:
A. exactly half of the people living west of B will shop at the store at B.
B. all of the people living between A and the mountains will shop at the store at A.
C. some, but not all, of the people living east of B will shop at the store at B.
D. exactly half of the people living east of B will shop at the store at B.
The specific factors model assumes that there are ________ goods and ________ factor(s) of production
A) two; three B) two; two C) two; one D) three; two E) four; three
Since 1997, the labor force participation rate for women in the United States has:
A. remained virtually constant. B. increased more than 10 percent. C. decreased more than 20 percent. D. equaled the participation rate for men.
Refer to the diagram, in which Q f is the full-employment output. If the economy's current aggregate demand curve is AD 3 , it would be appropriate for the government to:
A. reduce government expenditures and taxes by equal-size amounts.
B. reduce government expenditures or increase taxes.
C. increase government expenditures or reduce taxes.
D. reduce unemployment compensation benefits.