One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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Macland’s Power company is a natural monopoly. Its regulators have given Macland’s Power the price it can charge for the next five years with the fourth and fifth year’s price declining by 5%. After five years, Macland can renegotiate the price. What method are the regulators using to control this natural monopoly?
a. Cost plus regulation b. Price equals average total cost regulation c. Price cap regulation d. Cost elasticity mark up
Assets are:
A. stocks, bonds, and credit card balances. B. anything of value one owns. C. current income minus spending on current needs. D. saving minus investment.
Figure 29-1
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In Figure 29-1, which panel shows the effect of inflation on the interest rate?
A. Panel (A) B. Panel (B) C. Panel (C) D. Panel (D)
In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.