Assume that the central bank tries to reduce unemployment by reducing the discount rate for banks. Which of the following unwelcome effects is not a side effect of this measure?
a. Higher inflation rates.
b. Declining nominal exchange rate
c. Crowding out.
d. All of the above are side effects of a reduced discount rate.
.C
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The population explosion in many LDCs is best explained by
a. rising death rates and high birth rates b. declining marriage rates c. declining death rates and stable birth rates d. women who marry at a later age e. a high percentage of the population over 65
The purpose of antitrust policy is to promote competition, which leads to lower prices.
a. True b. False
Deficit rises in a recession and falls in a boom, even with no change in fiscal policy.
Answer the following statement true (T) or false (F)
A monopolist has market power because it faces a downward-sloping demand curve.
Answer the following statement true (T) or false (F)