If the Reserve Bank of Australia's policy is described as contractionary, then it would
A. reduce the overnight cash rate.
B. use open market operations to sell financial securities.
C. increase the level of liquidity in the financial market.
D. use open market operations to buy financial securities.
Ans: B. use open market operations to sell financial securities.
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Classical economists believed that
a. full employment was an unrealistic goal. b. the economy was essentially unstable. c. the economy naturally tended toward full employment. d. employment did not matter.
Gover bonds
What will be an ideal response?
Underlying economic theory is the idea that
A) people respond only to negative incentives, not to positive ones. B) choices are affected by both positive and negative incentives. C) value judgments do not play a role in the economic decisions people make. D) money is the only incentive that matters.
Explain how the firm decides on the optimal amount of research and development
What will be an ideal response?