The Federal Reserve has the power to:
A. create banks.
B. increase government spending.
C. cut taxes.
D. create money.
Ans: D. create money.
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Assume that the market for cell phones comprises two buyers and two sellers. The following table shows the demand and supply of cell phones at different prices. Using the information in the table, determine the market equilibrium price and quantity
Price ($) Cell Phones Demanded (Buyer 1 ) Cell Phones Demanded (Buyer 2 ) 10 100 80 20 80 65 30 75 50 40 60 45 50 30 30 60 20 22 Price ($) Cell Phones Supplied (Seller 1 ) Cell Phones Supplied (Seller 2 ) 10 10 25 20 30 40 30 50 45 40 55 50 50 65 60 60 75 70
Investment spending will increase when
A) the interest rate rises. B) the corporate income tax increases. C) firms become more pessimistic about earning future profits. D) business cash flow increases.
________ protection, similar to the escape clause in U.S. law, refers to temporary protection given to local industries facing competition from fairly traded foreign products
A) Safeguards B) Countervailing duty C) Fair trade D) Competitive trade
Having a government agency certify bond rating agencies may not be desirable
Indicate whether the statement is true or false