Increasing prices tend to decrease interest rates and increase investment spending
a. True
b. False
Indicate whether the statement is true or false
False
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Why did the government use expansionary monetary policies in the late 1970s, and what was the principal negative macroeconomic effect of these policies?
What will be an ideal response?
The arrival of Michael Jordan, Larry Bird, and Magic Johnson in the 1980s increased the popularity of pro basketball. This led to
a. an increase in the equilibrium quantity of professional basketball b. a decrease in the equilibrium quantity of professional basketball c. a decrease in the price of professional basketball tickets d. a decrease in pro basketball players' salaries e. an increase in the price of professional basketball tickets but no change in game attendance
Price ceilings which lead to shortages will impose costs on society because they
A. will lead to long waiting lines B. may result in black market prices, which are higher than the market-determined price would be. C. lead to a smaller quantity offered on the market. D. do all of the above.
Trading risk faced by U.S. banks results from:
A. adverse selection. B. changes in regulations. C. the free-rider problem. D. moral hazard.