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1. Which of the following would lead to a decrease in the money supply?
A. The Fed lowers the discount rate
B. The Fed sells government securities in the secondary market
C. The Federal government spends less money
D. The Fed lowers reserve requirements
E. Taxes are reduced
2. Currency held by the public…
A. Is not part of the money supply, but currency held by banks is B. Is part of M1 but not M2 C. Is part of the money supply, but currency held by banks is not D. And by banks is part of the money supply E. Or banks is not part of the money supply since it is not included in M1
A fund has an alpha of 0.73 percent and a tracking error of 4.9 percent. What is the fund's information ratio?
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What considerations come into play when considering whether the United States or any other political entity is spending the right amount for environmental quality improvements
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Assume that a manufacturer faces a Cobb-Douglas production function, q= 40K^0.5L^0.5 where q is output per period, L is labor, K is capital
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Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. Assume that the country is in a budget deficit and carrying a..
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