Suppose the Fed is successfully maintaining full employment in the economy. If businesses become pessimistic, we would predict ________.
A. the aggregate supply will shift to the left
B. there will be a move upward along the investment demand curve
C. the Fed will have to increase the money supply
D. the unemployment rate will fall
Answer: C
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Monopolies and oligopolies both erect barriers to entry through the use of
A) price cutting. B) patents. C) franchising. D) advertising.
If income increased by $20,000 . investment spending is fixed at $5,000 . government purchases are fixed at $10,000 . net exports are fixed at $500, and aggregate expenditure increases by $15,000 . what is the marginal propensity to consume (MPC)?
a. 0.25 b. 0.75 c. 0.33 d. 0.50 e. 0.70
Which of the following is a feature of a customs union?
a. The agreement only affects trade among members. b. The agreement only affects trade with nonmembers. c. The agreement establishes free trade among its members and a common trade policy with nonmembers d. The agreement provides mere guidelines and does not obligate members to any given policy. e. The agreement prohibits all tariffs.
The IRS receives approximately
a. 80 percent of the taxes owed b. 50 percent of the taxes owed c. 40 percent of the taxes owed d. 20 percent of the taxes owed e. 10 percent of the taxes owed