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
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Which of the following goods would most likely be an inferior good?
A. steak B. theater tickets C. French wines D. generic detergent
A decrease in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would: a. increase the money supply
b. decrease the money supply. c. leave the money supply unchanged. d. have an indeterminate effect on the money supply.
If the players in the figure shown act in their own self-interest, then we know that Adidas will earn:
A. $8 million. B. $2 million. C. $6 million. D. $10 million.
According to the Reverend Thomas Malthus
A. population tends to grow until checked by a shortage of food. B. population tends to grow until checked by a shortage of oxygen. C. population tends to grow unless checked by religious or moral restraints. D. economics is a dismal science.