Which of the following is an example of an expansionary monetary policy?
a. A reduction in government purchases of goods and services
b. An increase in the discount rate
c. An open market sale of U.S. government securities
d. A reduction in the required reserve ratio
e. A tax cut
d
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Recessions in the U.S. economy show up in economic data as periods of
A) declining prices. B) rising interest rates. C) slower growth or actual decline in nominal GDP. D) slower growth or actual decline in real GDP.
An example of moral hazard is
a. A taxi driver paid per mile taking the shortest route b. a piece-rate garment worker shirking more than a per hour worker c. an hourly salesman working less hard than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate
Which of the following would be the best government public policy to battle unemployment?
a. Minimize recessions b. Maximize unemployment payments c. Maximize unemployment insurance duration d. Minimize labor unions
In the factor market, households
A. buy resources. B. sell resources. C. are both buyers and sellers of resources. D. are neither buyers nor sellers of resources.