In an effort to stop the U.S. recession of 2007-2009, the federal government:
A. reduced taxes and increased government spending.
B. imposed large tariffs on many imported goods to protect domestic jobs.
C. raised interest rates to encourage greater business investment.
D. avoided Keynesian policies because of the threat of inflation.
A. reduced taxes and increased government spending.
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Which of the following is most liquid?
A) a share of stock B) a corporate bond C) a government bond D) a $100 bill
In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf. B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
Other things equal, the higher the interest rate paid on term deposits, the ________ funds that are available in banks' reserve accounts and the ________ the potential for expanding the money supply
A) more; greater B) more; lower C) fewer; greater D) fewer; lower
If a firm does NOT know its rival's profit function, then we consider that information to be
A) irrelevant in deciding its best strategy. B) private. C) common knowledge. D) Pareto sub-optimal.