By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again

Utility is best defined as

A) the amount one is willing to pay for a good. B) the price of a good. C) the satisfaction from consuming a good. D) the practical usefulness of a good.

On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?

If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5 B) 14.5 C) 8.5 D) 2.5 E) none of the above