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The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil...[leading to] the lowest price for domestic crude oil since June 1990."
A. Why were the members of OPEC trying to agree to cut production?
B. Why do you suppose OPEC was unable to agree on cutting production? Why did the oil market go into "turmoil" as a result?
C. The newspaper also noted OPEC's view "that producing nations outside the organization, like Norway and Britain, should do their share and cut production." What does the phrase "do their share" suggest about OPEC's desired relationship with Norway and Britain?
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Which of the following statements are true? To curb inflation and reduce the money supply the Federal Reserve can: I. Increase the discount rate II. Increase the required reserve ratio III. Decrease the discount rate IV. buy securities in the open ma..
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