In the 1920s, the Federal Reserve followed a policy of _____ because it believed that the insolvent banks ____
a. letting insolvent banks fail; were too small to be profitable and were badly managed
b. bailing out insolvent banks; too big to be allowed to fail
c. letting insolvent banks fail; would be purchased by solvent banks anyway
d. bailing out insolvent banks; this was what the Federal Reserve had been founded to do
a. Letting insolvent banks fail; were too small to be profitable and were badly managed.
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Refer to Figure 17-2. The nonaccelerating inflation rate of unemployment, or NAIRU, is associated with which point rate in the figure above?
A) A B) B C) C D) all of the above
Farmers can choose to produce eggs and/or milk. If there is a successful advertising campaign for people to "drink milk," then what will be the effect in the egg market?
a. None, since consumers do not see eggs and milk as related goods. b. Egg demand will increase. c. Egg demand will decrease. d. Egg supply will increase. e. Egg supply will decrease.
An increase in rent will ordinarily lead to
a. an increase in usage of land that was formerly idle. b. a decrease in total land employed. c. less-intensive usage of land. d. a decrease in the income of landlords.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
A) the law of production possibilities. B) the law of absolute advantage. C) the law of comparative advantage. D) the law of demand.