Which of the following correctly identifies a method to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Reduce the interest rate.
B) Increase the real exchange rate.
C) Reduce the investment in the economy.
D) Reduce the demand for goods and services in the economy.
A
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The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1945 and two of the competing banks have considered merging. Because the merger would raise the HHI by 155 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger as long as the HHI did not increase by more than 155 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1875.
Economics could be defined as the study of scarcity
a. True b. False Indicate whether the statement is true or false
What will be the effects of a decrease in government spending?
a. an increase in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending b. a decrease in equilibrium GDP, a decrease in money demand, an increase in the interest rate, and a decrease in investment spending c. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and an increase in investment spending d. a decrease in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending e. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and a decrease in investment spending
The Phillips curve is stable over time
Indicate whether the statement is true or false