If the Fed were to reduce the legal reserve ratio, we would expect:
A. lower interest rates, an expanded GDP, and a higher rate of inflation.
B. lower interest rates, an expanded GDP, and a lower rate of inflation.
C. higher interest rates, a contracted GDP, and a higher rate of inflation.
D. higher interest rates, a contracted GDP, and a lower rate of inflation.
A. lower interest rates, an expanded GDP, and a higher rate of inflation.
You might also like to view...
When the marginal product equals the average product, the
A) average product curve is downward sloping. B) average product curve is upward sloping. C) marginal product is at its maximum. D) average product is at its maximum.
Sam hires an attorney to present a court case. If Sam wins the case, he will receive some money. This payoff is a function of the attorney's hours and which judge is assigned the case that day
Judge A is very understanding toward people in Sam's position, but judge B is very harsh toward people like Sam. Is it possible for Sam to get the attorney to deliver the optimal amount of effort and make the attorney bear all of the risk?