Which of the following schools of economic thought would advocate increasing the rate of growth of the money supply during a recession and decreasing the rate of growth of the money supply during inflations?
A. The classical school
B. Keynesians
C. Monetarists
D. Supply-side economists
B. Keynesians
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Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of consumer surplus?
A) $50 thousand B) $112.5 thousand C) $225 thousand D) $337.5 thousand
Happy Campers is competing in the camping market with Camping R Us. Happy Campers drops its price below its cost and, in doing so, drives Camping R Us out of the market. Once Happy Campers is a monopoly, they raise their price and enjoy economic profit. This is an example of ________.
A) market division B) resale price maintenance C) bid rigging D) predatory pricing
In general, as wages go up:
A. people are willing to work less. B. the opportunity cost of leisure goes up. C. the opportunity cost of leisure goes down. D. people will always work more.
When a bank borrows money from the Federal Reserve,
A. Reserves increase for the bank. B. The ability to lend decreases for the bank. C. This is a sign that the bank is insolvent. D. Demand deposits increase for the bank.