Use the above figure. Assuming that policy actions are unanticipated, if the economy is at point A and the policy makers want to get to point B, they could
A. decrease taxation.
B. increase government spending.
C. decrease the money supply.
D. increase the money supply.
Answer: C
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In a common-value auction
a. Every bidder knows the exact value of the item being auctioned b. Each bidder only has an estimate of the value of the item c. The value is different for each bidder d. All of the above
Primary reserves are held in the form of ____ and ____; secondary reserves are held in the form of _____.
Fill in the blank(s) with the appropriate word(s).
In a nation's balance of payments, which one of the following items is always recorded as a positive entry?
A. Changes in foreign currency reserves B. Purchases by foreign travelers visiting the country C. Imports of goods and services D. Military foreign aid supplied to allied nations
Relative to a profit-maximizing competitively organized industry that is producing 6,000 units of output at a price of $7 per unit, firms acting collusively under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. more than 6,000; more than $7 B. 6,000; $7 C. less than 6,000; more than $7 D. less than 6,000; less than $7