How might fiscal policy be used to correct a recessionary gap?
A) Government spending would be adjusted to increase aggregate demand.
B) Business operations would be regulated by the government to become more efficient.
C) The exchange rate would be adjusted to discourage imports.
D) The exchange rate would be adjusted to encourage imports.
A
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If the required reserve ratio is 5 percent, then the simple deposit multiplier is
A) 2. B) 5. C) 10. D) 20.
Explain how the marginal product and average product of labor change as the labor employed increases (a) initially and (b) eventually
What will be an ideal response?
The GATT is
A) an international treaty. B) an international U.N. agency. C) an international IMF agency. D) a U.S. government agency. E) a collection of tariffs.
The patent system is intended to: a. prevent natural monopolies from unfairly exploiting their cost advantages. b. reward innovators by granting them temporary monopolies
c. spread information among firms as quickly and economically as possible. d. give small businesses a competitive edge over larger businesses.