A fiscal policy cure for inflation might include
A. Infrastructure development.
B. An increase in the reserve requirement.
C. A reduction in government spending.
D. Reductions in marginal tax rates for corporations and households.
Answer: C
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A vertical merger, like the merger of Seagate and Dell, would be attractive
a. only to Dell because it then avoids paying monopoly prices to Seagate. b. only to Seagate because it can then obtain two monopoly rents. c. to both Seagate and Dell but not to consumers who would find no difference in their welfare. d. to Seagate, Dell and consumers, all of whom would stand to benefit in some way.
During periods when the inflation rate is positive, how does the real interest rate compare to the nominal interest rate?
What will be an ideal response?
Identify which of the following motivated European expansion in America
(a) International trade and finance opportunities (b) Precious metals such as gold and silver (c) The hope of finding a northwest passage to the Orient (d) All of the above
Refer to the graph above. When output increases from Q 1 and the price level decreases from P 1, this change will:
Be caused by a shift in the aggregate supply curve from AS1 to AS2 Result in a movement along the aggregate demand curve from e3 to e1 Result in a movement along the aggregate demand curve from e1 to e2 Be caused by a shift in the aggregate supply curve from AS1 to AS3