How does the discovery of new resources affect trade patterns around the world?
Discovery of new resources often change a nation's core competencies and enables it to specialize in newer areas where it was earlier at a disadvantage. This can change established trade patterns between nations.
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When the Fed increases the discount rate, it is more likely that the economy experiences _________ and the increase in the rate will _____________
a. recession; increase the federal funds rate as well b. recession; increase the cost to banks of borrowing from the Fed c. recession; decrease the cost to banks of borrowing from the Fed d. inflation; decrease the cost to banks of borrowing from the Fed e. inflation; increase the cost to banks of borrowing from the Fed
In the early twentieth century, racial segregation of streetcars in the southern cities was largely opposed by
a. streetcar firms. b. government officials. c. Federal lawyers applying the Sherman antitrust laws. d. consumers.
In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks, in recognition of the growing unemployment problem. This extension is an example of
A) automatic fiscal policy. B) discretionary fiscal policy. C) expansionary monetary policy. D) supply-side fiscal policy.
Suppose that the absolute price elasticity for cookies equals 0.8. We could then say that the demand for cookies is
A) elastic. B) inelastic. C) unit-elastic. D) perfectly elastic.