If the account manager finds that the current level of bank reserves is greater than the desired level indicated in the most recent directive from the FOMC, he will
A) order banks to reduce their reserves.
B) order banks to raise their interest rates in an attempt to get them to loan out more of their reserves.
C) conduct an open market purchase.
D) conduct an open market sale.
D
Economics
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Suppose that when price is $10, quantity supplied is 20 . When price is $6, quantity supplied is 12 units. The price elasticity of supply is:
a. 0.5. b. 0.8. c. 1.0. d. 1.5. e. 2.0.
Economics
An agreement in which the incentives of both parties match their goals as closely as possible is:
A. a corporate takeover contract. B. an incentive-compatible contract. C. an X-inefficiency contract. D. a public good.
Economics