he Federal Reserve decided to buy bonds in order to bring the economy back to full employment. This must mean that the Federal Reserve believes that the full employment level of output is a not enough information b below 1 million c exactly 1 million d above 1 millio

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Federal Reserve decided to buy bonds in order to bring the economy back to full employment. This must mean that the Federal Reserve believes that the full employment level of output is
 
a
not enough information
b
below 1 million
c
exactly 1 million
d
above 1 million
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However the wuestion assume that the economy starts in equilibrium:
-the output is 1 million
-the equilibrium price of a one-year, $1000 bond is $950
-the money supply is 1 trillion
-the price level is 150

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