As unemployment rose during 1930 through 1932 and the economy plunged into the Great Depression, policy makers
a. reduced tax rates and increased the money supply.
b. increased tax rates and reduced the money supply.
c. increased both tax rates and the money supply.
d. reduced both the tax rates and the money supply.
B
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The freedom of entry and exit in monopolistic competition means that firms
A) enter the market when economic losses are being suffered. B) exit the market when economic profits are being earned. C) enter the market when normal profits are being earned. D) can enter a market to compete for economic profits and leave when economic losses are being incurred. E) find it easy to permanently earn an economic profit.
When graphed, variables that are unrelated are shown by either a horizontal or a vertical line
Indicate whether the statement is true or false
A consequence of adverse selection is:
A. buyers and sellers may lose surplus they would have gained with more complete information. B. too many transactions occur of low value. C. sellers violate the law when giving false information to buyers.
The Fed sells German bonds to commercial banks. Which of the following best describes the impact on the Fed's and the Banking System's balance sheets resulting from this transaction?
A. The Fed's assets and liabilities do not change, only the compositions of the assets change. For the banking system, assets and liabilities increase. B. The Fed's assets increase and its liabilities both increase. For the banking system, the value of assets and liabilities do not change, only the composition of assets changes. C. The Fed's assets and liabilities both decrease. For the banking system, the value of assets and liabilities do not change, only the composition of assets changes. D. The Fed's assets and liabilities increase, the banking systems assets and liabilities decrease.