When GM advertises its cars, the company is trying to cause a
A. rightward shift in the supply.
B. rightward shift in the demand.
C. leftward shift in the supply.
D. leftward shift in the demand.
Answer: B
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Suppose the federal government wants to encourage businesses to increase investment spending. Which policy may be the most effective?
a. an increase in corporate income taxes b. an increase in real interest rates c. an increase in warnings of a coming recession d. an increase in tax deductions for investment spending
The poverty rate is
A. The percentage of the population that is counted as poor. B. An annual income of less than $29,000 for a family of four in 2014. C. The percentage of the population that receives food stamps. D. The income needed for an individual to be above the poverty line.
If the reserve ratio is 100 percent, the value of the monetary multiplier is:
A. 1. B. 100. C. 10. D. 0.
In recent years, the strictest application of antitrust laws has been for:
A. Breaking up firms with monopoly power B. Prosecuting firms for price fixing activity C. Blocking vertical mergers D. Limiting foreign competition