What can one learn from Figure 13-3 from the text, shown below?
What will be an ideal response?
This figure shows that since the 1980s, United States foreign assets and liabilities have both increased rapidly. However, liabilities have risen faster than assets, resulting in a substantial net foreign debt.
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Compared with price searchers' markets, price takers' markets are likely to result in
A) less advertising. B) less competition. C) lower output. D) more profit.
If federal tax rates increased, what would happen to the interest rate on municipal bonds?
Economic theory assumes people's actions generally follow
A) from comparisons of expected costs and benefits. B) no predictable pattern. C) considerations of material self-interest. D) the Golden Rule.
All of the following were actions taken by the government or the Fed in response to the Financial Crisis of 2007-2009 EXCEPT
A) purchasing of most toxic assets such as mortgage-backed securities. B) reducing the federal funds rate to near zero. C) insuring deposits in money market mutual funds. D) effective nationalization of Fannie Mae and Freddie Mac.