Option a has a payoff of $10,000 in environment 1 and $20,000 in environment 2. option b has a payoff of $5,000 in environment 1 and $27,500 in environment 2. once the probability of environment 1 exceeds option a becomes the better choice. a. 0.60 b. 0.40 c. 0.45 d. 0.50 e. 0.57

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

answer; break-even analysis;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

answerboth the short run phillips curve and the aggregate demand and aggregate supply model