If the economy's resources are fully employed and prices are starting to rise, the Fed can ________ the money supply in an attempt to reduce inflationary pressure. If this action is well-calculated, output will ________
A) increase; rise
B) increase; remain close to its potential level
C) decrease; remain close to its potential level
D) decrease; fall
C
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Forward transactions originated in the market for
A) common stock. B) corporate bonds. C) government bonds. D) agricultural and other commodities.
Which of the following antebellum transportation innovations earned the greatest rate of return?
a. corporate-owned turnpikes b. the National Road c. the Erie Canal d. the Mainline Canal
Import standards on specific countries usually address issues affecting:
A. foreign production practices. B. domestic producers. C. domestic consumers. D. how goods and services flow from one nation to another.
If a monopolist is producing the quantity at which price equals marginal cost, it should
A) continue to produce this amount if it wants to maximize profits. B) reduce output if it wants to maximize profits. C) reduce price and keep output unchanged if it wants to maximize profits. D) increase output if it wants to maximize profits.