Both open market purchases and quantitative easing are directed at increasing reserves in the banking system and increasing the money supply
Indicate whether the statement is true or false
True
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Trade deficits always lead to future decreases in consumption if the trade deficits
A) support current investment. B) support current consumption. C) require borrowing from abroad. D) support either current investment or current consumption.
Which of the following is GDP designed to measure?
a. the total market value of goods and services produced domestically during the year b. changes in the cost of purchasing the typical consumer market basket of goods from one year to another c. the total size of the domestic underground economy d. the standard of living of the average citizen
When a rare skill contributes to the production of something that consumers value highly the:
A. value of the marginal product is high. B. marginal cost per unit is low. C. total product is high. D. marginal product is high.
Government antitrust activity led to the breakup of AT&T in the 1980s because, among other things, it felt that AT&T had too much control over the telecommunications market. What type of market failure was most likely involved?
A.) Inequity B.) Public goods C.) Externalities D.) Market power