The Federal Reserve uses open market operations rather than changes in legal reserve requirements as its principal tool of monetary management because changes in legal reserve requirements
A) can be easily evaded by commercial banks.
B) must secure Congressional approval.
C) would be excessively powerful and disruptive.
D) would be less profitable for the Federal Reserve Banks.
Question 2
Refer to the table above. If the market is perfectly competitive, what is Buyer 3's consumer surplus?
A) 0
B) -1
C) 1
D) 2
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