Which of the following accounts for the largest percentage of output in the United States?
a. The government
b. Business firms
c. Households
d. Banks
e. The rest of the world
b
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market ________.
A. increases and the federal funds rate increases B. decreases and the federal funds rate decreases C. increases and the federal funds rate decreases D. decreases and the federal funds rate increases
The Federal Open Market Committee consists of all the following people except
A) the Board of Governors of the Federal Reserve System. B) five presidents of Federal Reserve Banks, on a rotating basis. C) the chairman of the President's Council of Economic Advisors. D) the President of the Federal Reserve Bank of New York.
The most important advantages of bigness will be found in industries that show increasing returns to scale.
Answer the following statement true (T) or false (F)