The interest-rate-based transmission mechanism assumes that the Fed can stimulate investment by
A. selling bonds.
B. raising the discount rate relative to the federal funds rate.
C. raising the required reserve ratio.
D. buying bonds.
Answer: D
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If Slick Shades, a sunglasses manufacturer, contracts with an outside supplier to manufacture the lenses for the sunglasses, this is an example of ________.
A) outsourcing B) divestiture C) backward integration D) forward integration
Using the information in the table shown, the marginal revenue:
This table represents the revenues faced by a monopolist.
A. increases, then decreases as output increases.
B. is negative after the 6th unit.
C. increases as output increases.
D. decreases, then increases after the 6th unit.
Consumer Surplus
What will be an ideal response?
Critics of the government's fiscal policies argued that government deficits
A) prevented capital from flowing into the United States. B) were linked to the excess of imports over exports that occurred in the 1980s. C) caused the level of unemployment in the United States to increase during the 1980s. D) had directly contributed to a decline in the level of demand in the American economy.