A key indicator of the hardship experienced during the Great Depression is the:
A. high rate of inflation.
B. large budget deficits.
C. large trade deficits.
D. high rate of unemployment.
Answer: D
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If firms in a perfectly competitive industry produce an undifferentiated product, it is not possible to increase profits of the individual firms in the industry by increasing market demand for the product because of the large number of available
substitutes. Indicate whether the statement is true or false
Which of the following is true of capital markets during the 1980s?
A. The majority of financial capital was locally generated. B. The mortgages available to buy a house were mostly from abroad. C. The capital markets were more profitable as compared to the 1990s. D. The capital-gains tax was at an all-time low of 10%.
Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
A) Potential GDP is forecasted to be higher than equilibrium GDP. B) Potential GDP is forecasted to be lower than equilibrium GDP. C) Aggregate demand is growing too fast to keep the economy at full employment. D) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.
The money supply can be increased by decreasing the required reserve ratio.
Answer the following statement true (T) or false (F)