If the Fed fears a recession, it
A) decreases aggregate supply.
B) buys government securities.
C) sells government securities.
D) decreases the quantity of money.
E) decreases aggregate demand.
B
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Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face unlimited liability. B) As a sole proprietor, Torrie would be subject to significant rules and regulations. C) As a sole proprietor, Torrie would be taxed twice. D) As a sole proprietor, Torrie would not have control of the business.
What type of policy does the government adopt in dealing with government-inhibited goods?
A) It subsidizes their consumption. B) It subsidizes their production. C) It provides them as public goods. D) It taxes, regulates, or prohibits their use.
The firm should continue investing
A. only as long as its rental cost is greater than the interest rate. B. up to the point where the MRPK equals its rental cost. C. only as long as the MRPK is less than its rental cost. D. even if the MRPK is equal to its rental cost.
Adam Smith’s book, The Wealth of Nations,
a) Argued in favor of using political forces to allocate resources. b) Argued in favor of allowing markets to allocate resources. c) Supported a policy of government intervention into the economy d) All of the above are correct.