Suppose there is an increase in government spending. To stabilize output, the Federal Reserve would
a. increase government spending.
b. increase the money supply.
c. decrease government spending.
d. decrease the money supply.
d
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An advantage monetary policy has over fiscal policy is that monetary policy
A) can be quickly changed and implemented. B) is coordinated with fiscal policy. C) is approved by the president of the United States. D) affects consumption expenditure and investment without impacting international trade. E) has no multiplier effects.
Economic growth means:
A. more production of goods and services. B. people maintain their standard of living. C. all of a nation’s citizens must be better-educated. D. in general tax revenues are lower.
A monopolist can earn a positive economic profit, even in the long run
a. True b. False Indicate whether the statement is true or false
A nationwide concentration ratio is likely to understate market power when
A. A market is perfectly contestable. B. The true markets are local and small. C. There is extensive foreign competition. D. Firms sell nationally.