Analysis indicates that the economy is in a recessionary gap. Which of the following is the most appropriate policy mix in this situation?
a. a budget surplus and expansionary monetary policy
b. a budget deficit and expansionary monetary policy
c. a budget deficit and contractionary monetary policy
d. a budget surplus and contractionary monetary policy
b
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The most people live in ________ economies and the fewest people live in ________ economies
A) emerging market; developing B) advanced; emerging market C) developing; emerging market D) advanced; developing E) developing; advanced
If the Fed lowers the federal funds rate, which of the following occurs?
A) Investment increases. B) Consumption expenditure decreases. C) The price of the dollar on the foreign exchange market increases. D) Net exports decrease. E) Government expenditure on goods and services increases.
If there isn't sufficient information available, then which of the following approaches to reduce conflicts of interest will have the lowest probability of working?
A) leave it to the market B) supervisory oversight C) separation of functions D) socialization of information production
If the price of tuna fish increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the tuna fish producer could increase its total revenue by
a. lowering price. b. decreasing quantity supplied. c. leaving price the same. d. raising price. e. decreasing supply.