Conservatives usually favor increasing government spending to increase aggregate demand
a. True
b. False
Indicate whether the statement is true or false
False
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Studies on fast-food stores in Texas and New Jersey suggest that the federal minimum wage law
A. has huge ramifications on unemployment. B. does not have a discernable impact on unemployment. C. causes unemployment for high skilled workers. D. new entrants to the work force search for longer periods.
If the Federal Reserve wants to increase the availability of money and credit, it can:
a. lower the discount rate. b. raise the reserve requirements. c. sell U.S. government bonds to the public. d. encourage banks to increase their prime lending rate.
Investment is _________ related to the interest rate, and NCO is __________ related to the interest rate.
A. negatively; negatively B. negatively; positively C. positively; positively D. positively; negatively
If a natural monopolist is unregulated, then
A. the monopolist will be earning just a normal rate of return on investment. B. the monopoly will produce inefficiently from society's point of view. C. the monopoly will produce efficiently from society's point of view. D. the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.