Fiscal actions to eliminate a recession are likely to decrease the federal budget deficit.
Answer the following statement true (T) or false (F)
False
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The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently
If inflation does not adjust rapidly in the short run, then when the Federal Reserve decreases the nominal interest rate, the real interest rate in the short run will:
A. not change. B. be determined by saving and investment decisions. C. decrease. D. increase.
Explain the difference between: (1 ) the demand for domestic goods; and (2 ) the domestic demand for goods
What will be an ideal response?
If a natural monopoly is allowed to set its price above its average total cost, then
A) the company makes an economic profit. B) the company incurs an economic loss. C) competitors will enter the market. D) the company will produce more than the efficient amount of output.