Fixing the insolvency problem caused by the Great Recession, the U.S. Federal Reserve as reluctant to purchase toxic assets from banks because:
a. It could cause an unwanted expansion of the e U.S. monetary base.
b. Toxic security purchases had to be funded, and the Fed already had a major debt problem.
c.It could cause an unwanted contraction of the U.S. monetary base.
d. The Fed could be accused of nationalizing the U.S. financial system.
e. All of the above.
.A
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Refer to the above table. If the price is $3 the maximum profit this firm could earn is
A) $99. B) $306. C) -$100. D) -$99.
The slopes of the production possibilities curves for two nations reflect the
A. relative prices of the resources in the two nations. B. average income levels in the two nations. C. opportunity costs of production in the two nations. D. amounts of imports and exports of the two nations.
If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________
A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease
Which of the following mergers would result from the purchase of a computer chip company by IBM?
a. A horizontal merger. b. A vertical merger. c. A conglomerate merger. d. An interlocking merger.