One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market
What will be an ideal response?
One of the most important and most visible roles of the IMF is to
A) hold regular negotiations over tariff reductions. B) investigate countries that are charged with being unfair traders. C) provide loans to countries that need capital to develop their economies. D) intercede by invitation when countries cannot pay their international debts. E) serve as a forum for negotiating free trade agreements between groups of nations.
If the U.S. experiences a current account deficit, then
A. the U.S. must also be running a capital account deficit. B. the U.S. must be running a capital account surplus. C. the U.S. may either experience a capital account surplus or deficit. D. None of these statements are true.
Refer to the graph shown.
The bottom 20 percent of the families earn:
A. 20 percent of the income. B. 17.3 percent of the income. C. 6.6 percent of the income. D. 10.7 percent of the income.