This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates ... (Read 67 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve.
 
  What will be an ideal response?

Question 2

Refer to Figure 15-16. Which of the following would be true if government regulators require the natural monopoly to produce at the economically efficient output level?
 
  A) This results in a misallocation of resources.
  B) The firm will sustain persistent losses and will not continue in business in the long run.
  C) The marginal cost of producing the last unit sold exceeds the marginal benefit.
  D) The firm will break even.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kaykay69

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 29, 2018
Answer to Question 1

Reducing the interest rate lowers the cost of borrowing to firms and to households. As a result, both firms and households will increase expenditures. This increase in expenditures will shift the aggregate demand curve to the right.

Answer to Question 2

B


Frost2351

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

kjohnson

  • Member
  • Posts: 330
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

How stomatal pores open and close. How stomatal pores open and close.
lower digestive lower digestive
Dermatological changes with myxedema can occur behind the eyes or in the lower leg, as shown here. Dermatological changes with myxedema can occur behind the eyes or in the lower leg, as shown here.
Cyclone Sidr struck Bangladesh in 2007 Cyclone Sidr struck Bangladesh in 2007
Portrait of Typical 12-year-old Boy and Girl, 1981 and 2007-2009 Portrait of Typical 12-year-old Boy and Girl, 1981 and 2007-2009
Video: Interspecific Competition Relationship - Competitive & Niche Differentiation

For a complete list of videos, visit our video library