When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline


Answer: C

Economics

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A) .25. B) .75. C) $1,000/$750 = 1.33. D) 1/.25 = 4.

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In reality international trade is determined solely by comparative advantage and the free market forces of supply and demand

a. True b. False Indicate whether the statement is true or false

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Which statement is true?

A. The federal government collects much more in direct taxes than in indirect taxes. B. The federal government collects much more in indirect taxes than in direct taxes. C. The federal government collects the same amount in direct taxes as in indirect taxes.

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Refer to the above figure. The marginal cost of pollution abatement is curve

A. (1). B. (2). C. (3). D. (4).

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