An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
Economics
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Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a______ reason for saving.
A. precautionary B. life-cycle C. bequest D. private
Economics
Who controls a sole proprietorship?
A) owner B) bondholders C) stockholders D) employees
Economics
Discretionary fiscal policy is a policy that _____
Fill in the blank(s) with the appropriate word(s).
Economics
A central bank can help stop a bank panic by
A) raising the required reserve ratio. B) calling in consumer loans. C) acting as a lender of last resort. D) decreasing income taxes.
Economics