When a person incorporates unimportant events within a delusional framework and reads personal significance into trivial activit
1 answer:
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a. When the forces of supply and demand lead to an inefficient outcome: economists call this a market failure.
<h3>What is meant by market failure?</h3>This is the term that has to do with the state where the market that is an economy can be said to not be working.
b. The question in this category needs us to be able to fill in the details from the question into the empty boxes. Therefore:
For the efficient box
- a market in which economic surplus is maximized
For the inefficient box:
- a market transaction in which buyers or sellers behave irrationally
- a market transaction in which one party has information not available to other party
- a market dominated by few powerful businesses
- a market in which government regulation creates distortions
Read more on market failure here:
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Answer:
The money supply decreases by $25.5 million and money supply decreases by $170 million.
Explanation:
The reserve ratio is 15%.
The reserve sells bonds worth $25.5 million to the public.
This will cause a reduction of $25.5 million reserves as banks will need to pay Fed for the bonds.
The money supply will change by
=
=
=
= - $170 milion
So, the money supply will decrease by $170 million.