Assume that the reserve requirement is 20 percent. also assume that banks do not hold excess reserves and there is no cash held by the public. the federal reserve decides that it wants to expand the money supply by $ 40 million dollars.
a. if the fed is using open? market operations, will it buy or sell bonds?
b. what quantity of bonds does the fed need to buy or sell to accomplish the goal? explain your reasoning.

2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.

Increases in output and increases in the inflation rate have been linked to

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.