If inventory levels are decreasing, then we should expect business firms to
a. decrease prices.
b. decrease output.
c. lay off workers.
d. increase output.
d
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If the Fed wishes to reduce inflation then it should
a. increase the discount rate. b. decrease reserve requirements. c. buy government securities on the open market. d. Do any of the above.
If a lender charged a 9 percent nominal interest rate and the expected inflation rate is 4 percent, what is the difference between the real rate the lender received and the real rate the lender expected when actual inflation ended up being 2 percent?
a. 2 percent b. 4 percent c. -4 percent d. 1 percent e. 0 percent
Karl Marx believed that inevitably there would be a clash between ____________ and _____________, leading to an overthrow of capitalism.
Fill in the blank(s) with the appropriate word(s).
At least in the short run, each of these factors has increased competition except
A. the entry of foreign firms. B. the growth in size of many American firms. C. the rise of the service industries. D. the rise of new industries.