The economy is experiencing high unemployment and a low rate of economic growth and the Fed decides to pursue an expansionary money policy. Which action by the Fed would be most consistent with this policy?
a. Raising the discount rate
b. Raising the reserve ratio
c. Selling government securities
d. Buying government securities
d. Buying government securities
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U.S. official reserves are the ________
A) reserves of U.S. dollars held by the World Bank B) U.S. government's holdings of foreign currency C) reserves of U.S. dollars held by foreign banks D) holdings of foreign currency by the public and the banks
For a Nash equilibrium to be possible, all players must ________
A) be able to predict their outcomes associated with all possible actions of the other players B) have a way to communicate with the other players C) have a strategy which allows for collusion D) Both A and B
If the interest rate is below the equilibrium, which of the following occurs in this market?
a. excess supply b. excess quantity supplied c. excess demand d. excess quantity demanded
Robert produces sunglasses. He can sell them for $15 per pair. At the level of output where MR = MC, his AVC = $15.45 and his AFC = $.40 . Explain whether or not Robert should shut down