The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate?
b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
a) The equilibrium interest rate is 4 percent.
b) If the interest rate is greater than 4 percent, there is an excess supply of money. In this case, to be rid of their "extra" money, people buy bonds. The price of bonds rises and so the interest rate falls until it reaches its equilibrium value, 4 percent. At this interest rate, there is no longer an excess supply of money because the quantity demanded equals the quantity supplied.
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Which would be evidence of price discrimination at a local bar called Heaters?
A. Charging lower prices to customers wearing Heaters t-shirts. B. Charging lower prices during Happy Hour from 5 to 6 p.m. C. Charging higher prices than under perfect competition. D. Charging higher prices for imported than for domestic beer.
Which of the following describes the potential problems of approaches which improve inventory turnover?
A. Reducing the number of SKUs within a category can increase inventory turnover, but it can hurt sales if customers can't find the size or color they seek. Buying merchandise more often, and in smaller quantities, can reduce average inventory without reducing sales B. while increasing operating expenses. C. The reduced assortment can increase inventory tumover, however, customer patronage and sales can decrease. D. All of the above