Since the end of World War II, the economy of the United States has been more influenced by stabilization policy. One of the undesirable side effects of this has been that the economy now has a greater tendency to suffer from
A. more severe recessions and depressions.
B. higher levels of unemployment and lower rates of employment growth.
C. lower rates of growth in real and nominal GDP.
D. more persistent periods of inflation.
Answer: D
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Most government securities transactions take place in the
A) futures market. B) commodities market. C) over-the-counter dealer market. D) New York securities market.
Standby letters of credit
A) are a form of swaps. B) are a promise by a bank to lend the borrower funds to pay off its maturing commercial paper. C) are a promise by a large depositor to provide additional funds to a bank should the bank face an unexpectedly large deposit outflow. D) represent the unused balance on a bank credit card.
Which of the following statements is not correct?
a. Based on studies of human decision making, most people value fairness. b. Based on studies of human decision making, some people's preference are inconsistent over time. c. Government intervention is the best remedy for the problems caused by asymmetric information. d. Advertising can be an example of a company signaling the quality of its products.
A government-sponsored good is often
A. advertised. B. subsidized. C. taxed. D. inhibited by the government.