Scenario 13.1 Assume the Following Conditions Hold

question 99

Multiple Choice

Scenario 13.1 Assume the following conditions hold.
Now the Federal Reserve engages in an open market operation by purchasing $1 billion worth of government bonds from private bond dealers, who then deposit the $1 billion in the banks.This acts to lower the equilibrium interest rate by 2 percent. Refer to Scenario 13.1.What is the change in excess reserves following the open market operation by the Fed?

• A)-$3 billion
• B)-$0.67 billion
• C)+$0.67 billion
• D)+$3 billion
• E)+$5 billion

Distinguish between business ethics and marketing ethics.

Recognize the role of corporate social responsibility (CSR) in the marketing and operation of controversial or polluting industries.

Define and explain the concept of corporate social responsibility (CSR) and its importance in achieving the triple bottom line.

Identify stakeholders relevant to an ethical decision-making process in business and discuss their interests.

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Definitions:

Prices

The budget anticipated, required, or dealt in exchange for a commodity.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, achieving market balance.

Buyers

Individuals or entities that purchase goods or services for consumption or investment.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers in a marketplace.