When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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A good purchase for an investor seeking a high degree of liquidity with minimal market risk would be a U.S
A) Treasury bill. B) Treasury bond. C) Treasury note. D) savings bond.
Which of the following products is most likely to be produced by a perfectly competitive firm?
a. color televisions b. breakfast cereal c. legal services d. corn e. notebook computers
Disposable personal income is the income that households and noncorporate businesses have left after satisfying all their obligations to the government
a. True b. False Indicate whether the statement is true or false
The failure of communism in a large number of countries is at least partly explained by
a. the fact that those countries relied absolutely on the invisible hand. b. the fact that those countries did little or nothing to restrict trade with other countries. c. the lack of information, on the part of central planners in those countries, about tastes and preferences in their economies. d. the lack of information, on the part of central planners in those countries, about how much authority the government had in affecting economic outcomes.