According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
a. buy bonds to raise interest rates.
b. buy bonds to reduce interest rates.
c. sell bonds to raise interest rates.
d. sell bonds to reduce interest rates.
b
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The higher wage rate received by garbage collectors to compensate for the lower desirability of their job
a. would not exist in a competitive labor market b. is a compensating wage differential c. is caused by union negotiators d. disappears in the long run e. only applies when the garbage collecting market is an oligopoly
When the marginal propensity to consume foreign imports (MPCF) rises, ceteris paribus, what happens to the trade balance?
a. It increases. b. It decreases. c. It depends on what happens to the MPC of domestic goods. d. It will not change.
Which of the following industries accounts for the largest share of world trade?
a) agriculture b) mining c) manufacturing d) construction e) services
Figure 7.2 shows a monopolist's demand curve. The marginal revenue from selling the fourth unit is:
A. $8. B. $6. C. $4. D. $2.