What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
A) print more money
B) encourage the stock market
C) sell more government bonds
D) buy back government bonds on the open market
C
You might also like to view...
In the model of monopolistic competition, compared to a firm with a lower marginal cost, a firm with a higher marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) higher; less; less B) lower; more; more C) higher; more; more D) lower; less; less E) higher; less; more
In the presence of a negative externality
a. the market solution is efficient, but the market price is too high b. the market price is efficient, but the corresponding quantity is inefficient c. the market solution results in too little output being produced d. the efficient outcome is determined where the marginal social cost and market demand curves intersect e. the efficient outcome is determined where the marginal cost and market supply curves intersect
Economist B believes that if tax rates are cut, tax revenue is likely to fall. This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base
A) be larger than the resulting B) be equal to the resulting C) be smaller than the resulting D) occur long after the E) a and d
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.