If the Fed wanted to increase the money supply, they could:
A. increase the reserve requirement, reducing the reserve ratio.
B. decrease the reserve requirement, reducing the reserve ratio.
C. increase the reserve requirement, increasing the reserve ratio.
D. decrease the reserve requirement, increasing the reserve ratio.
B. decrease the reserve requirement, reducing the reserve ratio.
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Refer to Figure 14.1. Other things equal, an increase in the inflation rate is best represented as a movement from
A) point A to point B. B) point C to point A. C) point C to point B. D) point B to point C.
A payoff matrix
A) shows the payoffs (i.e. bribes) required to government officials for firms undertaking specific actions. B) details the actions each firm takes. C) shows the payoffs to each firm for each possible outcome. D) is optional in game theory.