The IS curve is Y = 20 - 1.5r, and the aggregate demand curve is Y = 15.5 - 0.3?. The monetary policy curve is ________
A) r = 4.5 - 1.8?
B) r = 20 + 0.3?
C) r = 3 + 0.2?
D) Y = 17.75 + 0.6?
E) none of the above
C
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If consumers have limited information about price and search costs exist, then
A) the result must be that all firms will charge the same price. B) the monopoly price must result. C) the full-information, competitive price is not an equilibrium. D) the difference in prices between firms will be greater than the search cost.
The Board of Governors:
A. are experts in banking, finance, and monetary policy. B. are appointed by the U.S. president and confirmed by the Senate to 14 year terms. C. Both these are true. D. Neither of these are true.
The legal reserve requirement is determined by
a. savings and loans b. banks c. Congress d. the FDIC e. the Federal Reserve
Cut on tax & debt
What will be an ideal response?