Which of the following would most likely occur if the federal government increased its spending and enlarged the size of the budget deficit during a period of full employment?
A. The rate of inflation would decline.
B. The rate of inflation would rise.
C. A recession would develop.
D. Interest rates would fall.
Answer: B
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Use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets, to answer the next question.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly raises the price from $10 to $12?
A. +$120 B. -$300 C. -$120 D. +$300
Suppose the Federal Reserve buys bonds from the banking system, the money supply curve ________.
A. will become flatter B. will become steeper C. shift to the left D. shift to the right
The interest rate that a commercial bank pays when it borrows from the Fed is the __________ rate
A) discount B) exchange C) federal D) bank
Which of the following is said to occur when a firm lowers its price to limit the decline in the quantity sold during a period of recession?
A. Persistent dumping B. Predatory dumping C. Cyclical dumping D. Seasonal dumping