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weqwewe [10]
2 years ago
9

Describe the Federal Reserve and Economic theories.

Business
1 answer:
Marianna [84]2 years ago
3 0

Answer:

The Federal Reserve pursued policies that most closely followed the theories of Keynes and Friedman. Both economists argued that aggregate demand could be influenced through policies. They believed that this could help the economy recover or grow. The Fed seemed to follow Keynes's theories by taking action to intervene. It also seemed to follow Friedman's thinking by focusing on increasing the money supply through monetary policy.

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59. A poultry rancher discovered that when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of h
oee [108]

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PED = -1.4 or |1.4| in absolute values, price elastic

Explanation:

the price elasticity of demand (PED) using the midpoint method:

PED = % change in quantity / % change in price

  • % change in quantity = {(Q 2 − Q1 ) / [(Q2 + Q1)/2]} x 100 = {(200 − 300 ) / [(200 + 300)/2]} x 100 =  -100 / 250 = -0.4
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