A financial panic was averted in October 1987 following "Black Monday" when the Fed announced that
A) it was lowering the discount rate.
B) it would provide discount loans to any bank that would make loans to the security industry.
C) it stood ready to purchase common stocks to prevent a further slide in stock prices.
D) it was raising the discount rate.
B
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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest?
A. $30 million. B. $50 million. C. $20 million. D. $35 million.
In trying to determine the "true cost" of some debated proposal,
A) actions have no true cost, only benefits. B) actions will entail different costs for different people. C) the costs of actions must ultimately be the same for everyone. D) there is no difference between costs and benefits.
The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply increases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
Paper money helped colonists pay soldiers for services provided when specie was not available. This money was fiat money; it did not possess specie backing
Indicate whether the statement is true or false