Immediately following a business cycle "peak" comes a
A) "trough."
B) "recession."
C) "expansion."
D) "recurrence."
B
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Credit unions ________
A) acquire access to funds by accepting deposits then use these monies in lending to households and firms B) are a special type of mutual fund C) raise funds by selling commercial paper then lend these funds to consumers D) acquire access to monies through the payment of premiums by employees
Medicare subsidies will cause people to
A) perceive the price they pay per unit of medical services to be lower than the price received by the provider. B) perceive the price they pay per unit of medical services to be higher than the price received by the provider. C) perceive the price they pay per unit of medical services to be exactly equal to the price received by the provider. D) demand fewer services.
To find economic profit from accounting profit, it is necessary to
A) subtract dividends. B) add retained earnings. C) subtract the opportunity cost of capital. D) add depreciation expense.
When a recession hits, we would expect the government to run a budget deficit by raising the level of its spending or by cutting taxes, or perhaps both. The Fed would be expected to:
a. reduce the required reserve ratio, increase the discount rate, and buy securities on the open market. b. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market. c. reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market. d. increase the required reserve ratio, reduce the discount rate, and sell securities on the open market. e. increase the required reserve ratio, increase the discount rate, and sell securities on the open market.