If the money multiplier is 2.4 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially

A feature that distinguishes economists' approach to making choices is (are):

A) assigning opportunity costs a major role in their analyses of choices. B) assuming individuals make choices to maximize objectives. C) emphasizing that choices are made at the margin. D) all of the above.

During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to

A) reduce unemployment. B) stimulate economic growth. C) reduce the rate of inflation. D) reassure financial markets and promote financial stability. E) reduce the current account deficit.