The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate
A) raising; lowering
B) raising; raising
C) lowering; lowering
D) lowering; raising
A
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If the price of Sea World tickets increased what might we expect to see happen to tickets for Disneyland?
A. Decreased supply of Disneyland tickets B. Increased demand for Disneyland tickets C. Decreased demand for Disneyland tickets D. Increased supply of Disneyland tickets
When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) incentives. D) the big tradeoff.
When decisions are made by majority rule, the individual consumption-payment link is broken
a. True b. False Indicate whether the statement is true or false
American textile manufacturers and union members have often lobbied successfully for restrictive quotas limiting the importation of textile products. The major impact of these quotas is
a. a permanent reduction in unemployment in the United States. b. lower prices for American consumers and an improvement in the quality of textile products available. c. higher prices for American consumers, a narrower selection of products, and less competition in the U.S. textile industry. d. long-run profits in the U.S. textile industry that are substantially above market equilibrium.