Which of the following actions by the Fed would be most likely to stimulate the economy?
A) Purchasing bonds on the open market.
B) Increasing interest rates from 3% to 5% to encourage more savings.
C) Increasing the required reserve ratio to ensure that banks stay solvent.
D) Raising the discount rate charged to commercial banks.
Ans: A) Purchasing bonds on the open market.
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In a quasi-experiment
A) quasi differences are used, i.e., instead of ?Y you need to use ( - λ × ), where 0 < λ < 1. B) randomness is introduced by variations in individual circumstances that make it appear as if the treatment is randomly assigned. C) the causal effect has to be estimated through quasi maximum likelihood estimation. D) the t-statistic is no longer normally distributed in large samples.
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price.
Select whether the statement is true or false. A. True B. False
Which one of the following will shift the investment curve in South Korea downward?
a. a series of major technological breakthroughs in South Korea b. lower tax rates in South Korea c. higher tax rates in South Korea d. tighter lending laws in South Korea e. a lower rate of capacity utilization in South Korea
Neither intermediate goods nor used goods are included in GDP. Explain why these expenditures are not included in GDP
What will be an ideal response?