The effects of financial deregulation on the IS and LM curves ________ the volatility of interest rates as the curves shift, such as the change in the amount that the interest rate must ________ when the Fed conducts open market purchases
A) decrease, rise
B) decrease, fall
C) increase, rise
D) increase, fall
D
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An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income
a. True b. False Indicate whether the statement is true or false
In the long run, a perfectly competitive market produces at ________, whereas the monopolistic competitive firm does not
A) the output at which the lowest average total cost of production is reached B) an output level at which positive economic profits exist C) zero economic profits D) the point at which MR = MC=ATC
The floods of 1993 caused the price of corn to increase. This is an example of
A. the operations of supply and demand. B. inflation. C. deflation. D. a sustained inflation.
The social interest theory of regulation predicts that the political process will seek to minimize
A) producer surplus. B) consumer surplus. C) total surplus. D) deadweight loss.