Consider the following statement, "The Federal Reserve fights recessions by increasing the money supply so people will have more money to spend." What is wrong with the statement and how can it be corrected?
What will be an ideal response?
The Federal Reserve fights recessions by increasing the money supply to lower interest rates, which in turn increases spending. It is not that people will have more money to spend, but that interest rates will be lower, which stimulates spending.
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What is a constant-cost industry? What does the long-run industry supply curve look like for a constant-cost industry?
What will be an ideal response?
A perfect monopoly:
A. has no competition at all. B. has complete market control. C. restricts output to maximize profits. D. All of these statements are true.
In a typical prisoner's dilemma with two prisoners, the prisoners will serve the least number of years in prison if both of them confess their crimes
a. True b. False Indicate whether the statement is true or false
The establishment of "right-to-work" laws came about with the passage of the
A. Sherman Antitrust Act. B. Taft-Hartley Act. C. National Labor Relations Act. D. Landrum-Griffin Act.