What was the original intent of the Federal Reserve Act of 1913?
What will be an ideal response?
The original intent was to create a central bank which have control over the amount of currency outstanding and the amount of discount loans in its role as a lender of last resort.
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A strategy is called a mixed strategy if it involves choosing ________
A) one particular action for a situation B) different actions randomly C) an action that yields a higher payoff to the opponent D) an action that yields zero payoff to the player
The fixed-cost fallacy occurs when
a. A firm considers irrelevant costs b. A firm ignores relevant costs c. A firm considers overhead or depreciation costs to make short-run decisions d. Both a and c
The absolute value of the price elasticity of demand for hamburger is higher than that of meat in general
Indicate whether the statement is true or false
Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. If there is a decrease in gross investment, the Fed should ________.
A. increase the money supply B. decrease money demand C. increase money demand D. decrease the money supply