Identify the four major instruments of monetary policy.
What will be an ideal response?
The four major instruments of monetary policy are open-market operations, changing the reserve ratio, changing the discount rate on loans that the Federal Reserve makes to financial institutions, and interest on reserves.
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According to the figure above, the opportunity cost of producing another computer is
A) higher at A. B) higher at B. C) the same at every point along the frontier. D) different at most points along the frontier but equal at points A and B because they are equally distant from the axes.
Using the values in the table above, and assuming that the real interest rate equals 4, calculate equilibrium values for consumption, household saving, investment, and net exports. Use these values to confirm that the goods market is in equilibrium
What will be an ideal response?