Activists
A) probably favor economic fine-tuning.
B) favor rules-based monetary policy.
C) argue for the deliberate use of monetary and fiscal policies to smooth out the business cycle.
D) argue against the deliberate use of monetary and fiscal policies to manage the economy.
E) a and c
E
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What happens in the primary market?
A) newly issued claims are sold by the borrowing firm to the initial buyer B) already issued claims are sold from one investor to another C) primary inputs like electricity are sold D) a corporate financial manager will resell previously issued shares of stock
As a result of low interest rates on CDs and the perceived riskiness of alternative investments following the financial crisis of 2007-2009, the bond market was affected in all of the following ways EXCEPT:
A) higher demand for bonds B) higher real interest rates C) lower nominal interest rates D) higher price of bonds
Monetary policy to cure inflation might include
A. An increase in automatic stabilizers. B. An increase in the discount rate. C. The purchase of securities in the open market by the Fed. D. A decrease in discretionary spending.
Marginal Revenue Product with six units of labor would be
A. $70.
B. $60.
C. $120.
D. -$60.