If Congress wanted to counteract the effects of a recession it could
A) increase government purchases. B) increase tax rates.
C) increase taxes by a fixed amount. D) decrease defense spending.
A
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Refer to the scenario above. In this game, the dominant strategy equilibrium occurs if ________
A) Firm A chooses Strategy Y, and Firm B chooses Strategy X B) Firm B chooses Strategy Y, and Firm B chooses Strategy X C) Both Firm A and Firm B choose Strategy X D) Both Firm A and Firm B choose Strategy Y
If a market is shared equally by 200 firms the Herfindahl-Hirschman Index is
A) 12.5. B) 25. C) 50. D) 200.
In the 1979-82 period, the Fed pursued a monetary policy which targeted the growth rate of the money supply. Given the effects of financial deregulation on money demand you would expect, ceteris paribus,
A) stable interest rates. B) volatile interest rates. C) a constant interest rate. D) slow growth in interest rates.
An industry supply curve is the horizontal summation of the supply curves of all of the individual firms.
Answer the following statement true (T) or false (F)