A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to ________.
A. ease monetary policy
B. tighten monetary policy
C. raise interest rates
D. reduce inflation in the economy
Answer: A
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When a good is illegal, the demand curve is likely to be inelastic because
A. the difficulty the buyer faces in getting their dealer to sell them more. B. the fact that when a good is illegal, addicts make up a greater percentage of users. C. price dramatically impacts usage. D. extra costs associated with avoiding capture.
Which of the following will tend to make oil extraction more economical?
A) rising oil prices B) additional oil exploration C) conservation measures D) development of oil substitutes
One factor hastening the demise of the Soviet Union was _____
a. its military alliance with Cuba b. its attempt to keep up with the United States in an arms race c. its inability to predict the optimal amount of defense spending d. its strong economic output
A decrease in the rate of interest, other things being equal, will cause a:
A. rightward shift of the investment demand curve. B. movement upward along the investment demand curve. C. movement downward along the investment demand curve. D. leftward shift of the investment demand curve.