An open market ________ by the Fed increases interest rates and ________ output
A) purchase; increases B) sale; decreases
C) purchase; decreases D) sale; increases
B
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Adam Smith's book, Wealth of Nations was published at the time of the
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer
What will be an ideal response?
When new checkable deposits are created through loans,
a. the money supply contracts. b. excess reserves are destroyed. c. the money supply remains the same. d. the money supply expands. e. the required reserve ratio declines