If the Fed wants to increase bank reserves, it can:
A. Buy bonds.
B. Raise the discount rate.
C. Raise the reserve requirement.
D. Sell bonds.
A. Buy bonds.
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What is the dominant strategy in the prisoner's dilemma?
A) There is no dominant strategy. B) Each prisoner confesses because this is the rational action to pursue. C) Do nothing in the hope that the other prisoner will also do nothing. D) Do not confess because the other prisoner will most likely confess.
Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:
A) depository institutions. B) financial market institutions. C) insurance companies. D) none of the above.
Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower