Beginning in December 2007, the Fed began cutting the federal funds rate from 4.25% to less than 1%. During this time, it was engaged in ________ monetary policy in order to reduce the threat of a ________ in the US economy
A) expansionary; stagflation
B) contractionary; stagflation
C) expansionary; recession
D) contractionary; recession
C
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A natural monopoly's average cost curve i. intersects the demand curve while the average cost curve slopes downward
ii. reaches its minimum before it intersects the demand curve. iii. intersects the demand curve below the intersection of the marginal cost curve and the demand curve. A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Social capital is
a. the shared values and trust that promote cooperation in the economy b. the buildings and equipment used to produce goods and services c. a government regulation aimed at improving health and safety d. the accumulated knowledge, skill, and experience of the labor force e. the owner's own or borrowed money invested in a business
Which of the following is a reason behind low standards of living in developing countries?
a. High human and physical capital per worker b. Low human and physical capital per worker c. Low birth rates d. High tax rates e. Low public expenditure
______________—a term referring to the highly inelastic case of demand or supply in which a percentage change in price, no matter how large, results in zero change in the quantity; vertical when graphed.
a. Infinite elasticity b. Zero inelasticity c. Constant unitary elasticity d. Perfect elasticity