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Author Question: When does a shortage occur? What will be an ideal response?[br][br][b][color=gray]Question ... (Read 61 times)

APUS57

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on: Jun 29, 2018
When does a shortage occur?
 
  What will be an ideal response?

Question 2

When the Fed purchases government securities ________ loans end up being made because ________.
 
  A) more; excess reserves in the banking system increase
  B) fewer; excess reserves in the banking system decrease
  C) more; excess reserves in the banking system decrease
  D) fewer; required reserves in the banking system increase but desired reserves decrease
  E) fewer; excess reserves in the banking system increase
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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zenzy

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

A shortage occurs when the price is below the equilibrium price. When the price is less than the equilibrium price, the quantity demanded is greater than the quantity supplied.

Answer to Question 2

A


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