The Obama administration and Congress passed an $830 billion expansionary policy in early 2009 involving both tax cuts and increases in government spending, according to the Congressional Budget Office. Which of the following actions offset the federal expansionary policy?
a. reduced spending by consumers
b. increased state sales and property taxes
c. reduced spending by state and local governments
d. increased interest rates
c. reduced spending by state and local governments
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eBay has a seller reputation system to provide
A) consumers with a signal concerning seller quality. B) sellers a chance to signal other sellers concerning their quality. C) a reduction in monopoly power. D) improvements in investor relations.
Suppose the market demand curve for a Bertrand duopoly is downward sloping. What happens to the Nash equilibrium price and market quantity if the constant marginal cost declines?
A) Price and quantity decline B) Price increases and quantity declines C) Price decreases and quantity increases D) Price and quantity increase
Historically, as recessions have ended the unemployment rate declined
a. gradually to near zero. b. rapidly to near zero. c. gradually to a rate of about 5%-6%. d. rapidly to a rate of about 5%-6%.
In the fall of 2008, the Federal Reserve lowered its target for the federal funds rate to nearly 0 percent. What is the name of the group within the Federal Reserve that made this decision?
A. Federal Funds Operating Group B. Federal Advisory Committee C. Federal Deposit Insurance Corporation D. Federal Open Market Committee