Which of the following actions would the Fed take to fight inflation?
(A) Increase the money supply.
(B) Reduce the money supply.
(C) Increase government spending.
(D) Raise taxes.
Ans: (B) Reduce the money supply.
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According to the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good because the domestic price is greater than the world price.
B. export this good because the domestic price is greater than the world price.
C. import this good because the world price is greater than the domestic price.
D. export this good because the world price is greater than the domestic price.
Behavioral economics refers to the study of situations
A) where consumers and firms appear to make choices that are appropriate to reach their goals. B) where consumers and firms appear to value fairness when they make choices. C) where consumers and firms disobey the laws of demand and supply. D) where consumers and firms do not appear to be making choices that are economically rational.
Low-income developing countries generally have the following characteristics, except:
A. Low population growth rates B. Low levels of industrialization C. Dependency on exports of agricultural products or raw materials D. Minimal amounts of capital resources
One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to:
A. Guarantee cash assistance for poor families B. Set a 5-year lifelong limit on welfare benefits C. Get the Federal government to pay more of the cost of welfare D. Make welfare benefits more equitable among those receiving them