What are stock market margin requirements, and how and why does the Fed control them?
A stock market margin requirement is the fraction of a stock's price that must be put up by the person
buying the stock. The lower this requirement is, the easier it is to borrow money to acquire a stock. The Fed
can raise margins to discourage speculative bank loans which might fuel inflation, and it can lower margins
to encourage bank loans in the hopes that the loans would create new deposits, new money, and economic
growth.
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Which of the following resources is not essential in the production of a typical cheese pizza?
A) Dough B) Sauce C) Heat D) Fodder for cows E) Trick question: all of the above are essential.
We can predict the outcome of a two-player game as long as
a. each player follows a strategy that negates the other player's strategy b. at least one player has a bilateral strategy c. neither player has a subsistence strategy d. neither player has a dominant strategy e. at least one of the players has a dominant strategy