In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in many countries increased their money supplies. The central banks might have done this by
a. selling bonds on the open market, which would have raised the value of money.
b. purchasing bonds on the open market, which would have raised the value of money.
c. selling bonds on the open market, which would have raised the value of money.
d. purchasing bonds on the open market, which would have lowered the value of money.
d
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Governments often intervene in agricultural markets by
A) granting subsidies. B) setting production quotas that will increase production. C) setting price floors that reduce prices for buyers. D) imposing heavy taxes on farm products.
What is meant by "tax incidence"?
What will be an ideal response?
______________ are events that cause stress, often requiring changes in normal patterns of behavior
a. Disappointments b. Crises c. Sports activities d. Office meetings
The decrease in consumer spending that occurred after the collapse of the housing bubble caused aggregate:
A. demand to increase. B. demand to decrease. C. supply to increase. D. supply to decrease.