If the Fed wishes to slow economic activity, it might actively pursue:
A. expansionary fiscal policy.
B. expansionary monetary policy.
C. contractionary fiscal policy.
D. contractionary monetary policy.
D. contractionary monetary policy.
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If the price elasticity of demand for a good equals one, then the demand for that good is:
A. inelastic. B. elastic. C. unit elastic. D. perfectly elastic.
Which of the following is a characteristic of a competitive market?
a. There are many buyers but few sellers. b. Firms sell differentiated products. c. There are many barriers to entry. d. Buyers and sellers are price takers.
You are better off choosing $100 today rather than $200 in 9 years if the interest rate is
a. lower than about 8 percent. b. higher than about 8 percent. c. lower than about 10 percent. d. higher than about 10 percent.
Which of the following statements is false?
A) One of the intended effects of the health-care reform bills passed in March 2010 was for some people who had health insurance before the reform to choose to become uninsured after health-care reform. B) One of the provisions of the health-care reform bills passed in March 2010 is that individuals will be fined for not buying insurance. C) Among the provisions in the health-care reform bills passed in March 2010 is that insurance companies are prohibited from turning down a person with a preexisting disease. D) One of the objectives of the health-care reform bills passed in March 2010 was to bring more people into the pool of insured persons so that insurance policies would become cheaper.