If the government uses the budget as an economic stabilizer, the budget is most likely to be in deficit during a(n)
a. inflationary period.
b. trough.
c. expansion.
d. peak.
b. trough.
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The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently
Fred's Widget Company has purchased $500,000 in equipment, which can be sold for a salvage value of $300,000 at any time. The best interest rate on alternative investments is 5%
What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?
When oligopolists join together in a cartel, they
a. have chosen to ignore interdependence. b. have admitted that their behavior is interdependent. c. are planning to violate the law of supply and demand. d. are trying to behave like perfect competitors.
Supply-side economists focus more than other economists on
a. how fiscal policy affects consumption. b. the multiplier effect of fiscal policy. c. how fiscal policy affects aggregate supply. d. the money supply.