A lack of current saving can be offset by borrowing, but the availability of borrowing is limited by the prospects for future saving
a. True
b. False
Indicate whether the statement is true or false
True
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Efforts by a firm to obtain a monopoly
A) are called price discrimination. B) increase consumer surplus. C) are called rent seeking. D) are called price taking.
The money supply contracts when the Fed: a. replaces worn and ripped Federal Reserve notes. b. sells government securities
c. borrows from the U.S. Treasury. d. purchases equities in major U.S. corporations.
Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of the aggregate-demand curve?
a. When interest rates fall, In-and-Out Convenience Stores decides to build some new stores. b. The exchange rate falls, so French restaurants in Paris buy more Kansas beef. c. Tyler feels wealthier because of the price-level decrease and so he decides to remodel his kitchen. d. With prices down and wages fixed by contract, Fargo Concrete Company decides to lay off workers.
The period of growth from the level of the previous peak to a new peak in Real GDP is called a
A. recession. B. expansion. C. recovery.