Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS3?
A. The banking system decides to hold less excess reserves and make more loans.
B. The reserve requirement is reduced by the Board of Governors.
C. The Federal Open Market Committee decides to sell bonds.
D. The discount rate is decreased by the regional Federal Reserve banks.
Answer: A
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The “law” of diminishing returns asserts that marginal returns will ultimately diminish when the quantity of one input is increased.
Answer the following statement true (T) or false (F)
The gap between consumption and income can never be particularly large
Indicate whether the statement is true or false
Refer to Figure 12.1. What is the Nash equilibrium?
A. James chooses Up, Theodore chooses Left
B. James chooses Up, Theodore chooses Right
C. James chooses Down, Theodore chooses Left
D. James chooses Down, Theodore chooses Right
Assume that the U.S. population is 300 million. If 70 million individuals are legally classified as unable to work (or are less than 16 years of age), 80 million are classified as unwilling to work, and 14 million are unemployed, what is the unemployment rate?
a. 10.3 percent b. 6.4 percent c. 4.7 percent d. 9.3 percent e. 6.7 percent