During recessions, government expenditure automatically
a. falls because of programs such as unemployment insurance and Medicare.
b. rises because of programs such as unemployment insurance and Medicare.
c. falls because of the progressive income tax system.
d. rises because of the progressive income tax system.
b. rises because of programs such as unemployment insurance and Medicare.
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An increase in price results in increase in supply but not an increase in the quantity supplied
Indicate whether the statement is true or false
In which of the following assets are commercial banks in the United States NOT allowed to invest checkable deposits?
A) home mortgages B) corporate bonds C) municipal bonds D) U.S. Treasury bonds
Figure 11-5
Crown Theater is the only movie theater in the city. Its cost and revenue curves are shown in Figure 11-5. Monopolist Crown Theater would set the price of its tickets at
a.
$7.50.
b.
$6.00.
c.
$4.50.
d.
$3.00.
If your income rises at 5 percent and inflation has risen at 3 percent, then the purchasing power of your income has
A. increased. B. eroded. C. stayed the same. D. fallen, but will increase due to indexing.