By raising the discount rate, the Fed leads banks to make ______ loans to households and firms, which will _________ checking account deposits and the money supply
A. More; decrease
B. Fewer; decrease
C. Fewer; increase
Ans: B. Fewer; decrease
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In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
All of the following are characteristics of a monopolistically competitive industry EXCEPT
A) homogeneous products. B) many firms. C) low barriers to entry and exit. D) sales promotion and advertising.
The high unemployment of 2008-2010 caused a substantial decrease in inflation which created fears of deflation
a. True b. False Indicate whether the statement is true or false
Intertemporal substitution dictates that
a. people will work less in periods of high productivity. b. people will spend more in periods of high productivity. c. people will work more in periods of high productivity. d. people will spend less in periods of high productivity.