If indicators like weak demand and falling commodity prices caused concern about deflation (falling prices), what could the Fed do to head off the deflationary threat?
a. increase the reserve requirements imposed on banks
b. buy bonds in order to expand the money supply
c. increase the discount rate
d. increase the national debt
B
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One of the primary reasons that Mexico has experienced relatively low rates of economic growth is that for Mexican entrepreneurs,
A) the government has a history of nationalizing all successful domestically-owned industries. B) problems in the banking system have made it difficult to obtain the funding needed to finance expansion. C) there is a shortage of low-skilled labor to fill manufacturing jobs. D) incentives from its neighboring Central American countries has attracted most of the foreign investment in the region.
Nominal gross domestic product is based on:
a. the existing prices at which final goods and services are actually sold. b. prices of final goods and services adjusted for inflation. c. prices at which intermediate goods are sold. d. none of these.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
In every economic system, choices must be made because resources
A. are unlimited, but human desires and wants are limited. B. are unlimited, and so are human desires and wants. C. are limited, but human desires and wants are unlimited. D. are limited, and so are human desires and wants.