If Congress increases taxes to balance the federal budget, then to prevent additional unemployment and a recession the Fed can
a. reduce interest rates by increasing the money supply.
b. increase interest rates by decreasing the money supply.
c. increase interest rates by increasing the money supply.
d. reduce interest rates by decreasing the money supply.
a
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Copper falls into which factor of production category?
A) land B) labor C) capital D) entrepreneurship
In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase B) rise; a decrease C) fall; a decrease D) fall; an increase
Which of the following best describes the "guiding function" of price?
A) In response to a surplus or shortage in two markets, price serves as a "guiding function" by decreasing in one market and increasing in the other market in the short run. B) The guiding function of price is the movement of resources into or out of markets in response to a change in the equilibrium price of a good or service. C) The guiding function of price occurs when the market price changes to eliminate the imbalance between supply and demand caused by a shortage or surplus at the original price. D) The guiding function usually occurs in the short run while the rationing function usually occurs in the long run.
If A and B are complements, an increase in the price of good A would:
A. lead to a decrease in demand for B. B. lead to an increase in demand for B. C. have no effect on the quantity demanded of B. D. none of the statements associated with this question are correct.