During a period when output and employment are falling, the government will try to
What will be an ideal response?
stimulate borrowing and spending.
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________ is the largest international debtor in the world
A) Brazil B) Mexico C) Italy D) The United States
If gold becomes acceptable as a medium of exchange, the demand for gold will ________ and the demand for bonds will ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
Suppose First National Bank makes a one-year simple loan of $1,000 at 7% interest to Harry's Restaurant. At the end of one year Harry's Restaurant will pay First National
A) $934.58. B) $1007. C) $1700. D) $1070.
Government actions that create monopolies
A) spur product innovation by the monopoly. B) create deadweight loss. C) result in lower average costs of production. D) ensure that firms price at marginal cost.