When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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Refer to Game Matrix V. Which of the following values of X and Y result in the only Nash Equilibrium being (No, No) and there not being a Prisoners’ Dilemma?
a. X = 21, Y = 9. b. X = 19, Y = 11 c. X = 31, Y = 11. d. It is not possible for (No, No) to be a Nash Equilibrium and for there not to be a Prisoners’ Dilemma.
A clear effect of deregulating the airline industry has been to
A) eliminate price competition between airlines. B) make fewer flights available at popular times. C) raise average fares. D) reduce airline safety. E) reduce the average wage of pilots.
Which of the following is a liability to a bank?
A) total reserves B) transaction deposits C) government securities D) loans
The largest revenue source in the U.S. federal tax system is the corporate income tax
a. True b. False Indicate whether the statement is true or false