During recessions, the unemployment rate ________ and output ________.
A. rises; rises
B. falls; falls
C. rises; falls
D. falls; rises
Answer: C
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A Nash equilibrium occurs if ________
A) each player chooses strategies that are mutual best responses B) each player chooses his or her dominant strategy C) each player chooses only a pure strategy D) each player chooses only a mixed strategy
Autonomous planned spending includes five components of which two are dependent on the interest rates. These are
A) government spending and autonomous tax revenue. B) the demand for exports and the demand for imports. C) autonomous consumption and planned investment. D) government spending and investment.
Which of the following was NOT a result of the passage of the Gramm-Leach-Bliley Act?
A) It repealed the Glass-Steagall Act. B) It allowed commercial banks to participate in securities, insurance, and real estate activities. C) It authorized new financial holding companies which permitted securities and investment firms to own commercial banks. D) It increased the capital requirements for commercial banks.
Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output. B) Tariffs increase government revenue. C) Tariffs mean higher prices and less consumption for consumers of the product. D) Tariffs increase the efficiency of how resources are allocated.