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Author Question: Refer to Figure 26-8. In the figure above, if the economy is at point A, the appropriate monetary ... (Read 104 times)

JGIBBSON

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on: Jun 29, 2018
Refer to Figure 26-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
 
  A) lower interest rates. B) raise interest rates.
  C) raise income taxes. D) lower income taxes.

Question 2

What is odd pricing? Why do some merchants use odd pricing?
 
  What will be an ideal response?
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wshriver

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Odd pricing is the practice of charging prices that aren't round numbers, especially prices ending in 9 or 5 rather than 0. One important reason for odd pricing is to give buyers the illusion that they are paying significantly less: 99.99 seems a lot less than 100 to some people.


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