Refer to the diagram that applies to a private closed economy. If gross investment is I g1 , the equilibrium GDP and the level of consumption will be:

When the Fed wants to undertake open market operations, it

A) buys or sells securities through the trading desk at the New York Federal Reserve Bank. B) can require all commercial banks to buy from or sell to it. C) can require all member banks to buy from or sell to it. D) buys from or sells to the U.S. Treasury.

Refer to Scenario 12.1. What is the probability of neither Simon nor Paula trying to rescue the man?

A) 9% B) 21% C) 30% D) 49%