When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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Many economists and policymakers have raised concerns about crowd funding due to the existence of:
A) information costs facing small investors B) information costs facing business start ups C) transaction costs facing business start ups D) increased competition for banks in funding business start ups
Death taxes, both state and federal, account for about _____ percent of total tax revenue.
A. 1 B. 2 C. 3 D. 10
When a shortage occurs in the market for a good, quantity
a. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption. b. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. c. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. d. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
If ATC is falling, then MC must be:
a) rising. b) below ATC. c) equal to ATC d) above ATC. e) falling.