In the United States during the 1930s, politicians
A) deliberately relied on government spending and taxation even though they knew the depression would continue.
B) knew that the depression would eventually subside because of automatic stabilizers.
C) did not believe in using government spending and taxation because they feared the consequences of budget deficits.
D) relied on government spending and taxation to pull the economy out of the depression.
C
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Rivalry among firms and individuals for sales to consumers
a. is the natural regulator that makes a market system work. b. is known as competition. c. regulates the allocation of resources in a market system. d. All of these.
Lazy Lucy's parents decided that they would only pay her tuition if she passes all her classes. They would stop paying her tuition if she procrastinates and fails her courses. Lucy's parent's decision is a solution to a ________problem
a. Adverse selection b. Moral hazard c. Forced bankruptcy d. None of the above
The quantity equation states:
A. M ×V = P ×Y. B. M ×P = Y ×V. C. P ×V = M ×Y. D. M ×Y = P ×V
As new firms enter an existing industry, it can be expected that the
a. market price will increase b. output of existing firms will increase c. profit of existing firms will increase d. market demand should decrease e. profit of existing firms will decrease