Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate
B. Buying bonds and increasing the discount rate
C. Decreasing the discount rate and increasing the reserve requirement
D. Decreasing the discount rate and buying bonds
D. Decreasing the discount rate and buying bonds
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If a monopolist faces entry by a potential rival, investing to lower its marginal cost
A) is a credible way to deter entry. B) is not a credible threat. C) is credible but will not deter entry. D) will not occur, even when there are no barriers to entry.
When economists talk about a "new normal" in terms of conditions in the production and employment sectors, they are suggesting a change in people's perceptions influenced by the:
A. Hindsight bias B. Confirmation bias C. Availability heuristic D. Framing effect