Suppose the U.S. Government banned the sale and production of cigarettes. What are likely effects of this action on the market for cigarettes?
Several changes are likely to happen in the cigarette market. First, the quality of cigarettes sold will decline. Second, the price of cigarettes will rise. Third, the profits of persons selling cigarettes (assuming they are not caught) will rise. Fourth, the rate of violence will increase.
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Total Government Debt is the sum of previous surplus and deficits.
A. True B. False C. Uncertain
Competing broadcasting networks are motivated to choose socially program timing
Indicate whether the statement is true or false
A single bank is severely limited in its ability to create money because: a. the FDIC will not permit it to create money unless the Resolution Trust Corporation guarantees the loans. b. loan recipients usually take the proceeds of the loan in cash
c. the funds loaned probably will be deposited in another bank. d. recent federal legislation prohibits banks from creating money except to finance international trade.
Based on the graph showing rational expectations and the AD/AS model, how do shifts in the short-run aggregate supply and aggregate demand curves influence RGDP?
a. Since both curves move to the left, RGDP decreases.
b. Since both curves move to the right, RGDP increases.
c. Since the curves move equally in opposite directions, RGDP does not change.
d. Since both curves become vertical, RGDP becomes zero.