Which of the following is an example of an automatic stabilizer?
A. The reduction in the money supply that occurs as banks become less willing to make loans during a recession
B. The reduction in real wages that occurs as the economy goes into a recession
C. The increase in government spending that occurs as the result of new spending bills passed by Congress
D. The rise in tax revenue that occurs as a result of growth in real GDP
D. The rise in tax revenue that occurs as a result of growth in real GDP
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According to Max Weber, the Protestant world view that encouraged hard work and saving was crucial to industrialization and the development of capitalism. Which hypothesis is this view based on?
A) The geography hypothesis B) The location hypothesis C) The institutions hypothesis D) The culture hypothesis
What is the primary problem caused by adverse selection?
a. Straining the insurance system b. Creating healthcare exchanges c. Mandating insurance premiums d. Increasing government regulation
If the federal funds rate rises above the Fed's target range, the Fed should take:
A. an offensive action and sell government bonds. B. a defensive action and buy government bonds. C. a defensive action and sell government bonds. D. an offensive action and buy government bonds.
Recent studies show that recent immigrants compete for jobs with immigrants who came into the country earlier.
Answer the following statement true (T) or false (F)