Quarterly data for the years 1988-93 for the nominal federal funds interest rate and the output ratio show that the Fed
A) reacted to a high output ratio by raising the interest rate.
B) reacted to a high output ratio by lowering the interest rate.
C) reacted to low output ratios but not to high output ratios.
D) did not react to movements in the output ratio.
A
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In order to ________, a government must increase spending and decrease taxation
A) decrease aggregate supply B) increase aggregate supply C) decrease aggregate demand D) increase aggregate demand
The income statement indicates how revenue is transformed into net income
Indicate whether the statement is true or false
The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500The price elasticity of supply (based on the midpoint formula) when price decreases from $25 to $20 is
A. 0.69. B. 0.51. C. 1. D. 0.64.
Trade diversion results in
A) an increase in the total amount of trade in the world. B) a decrease in the total amount of trade in the world. C) no change in the total amount of trade in the world. D) either an increase or decrease in the amount of trade in the world, depending on where trade takes place.