The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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How well has the international capital market perform?
What will be an ideal response?
In reality, decisions made by firms may not always produce maximum total profit because some executives
A. are more motivated by altruism. B. are more interested in market share than profits. C. may push research and development to the point that profits decline. D. All of the responses are correct.
The classical economic doctrine held that the normal equilibrium position of the economy was one of
a. rising interest rates. b. some unemployment. c. rising prices. d. full employment.
A large denomination time deposit is
A. money in a passbook savings account. B. an S & L share. C. any money left on deposit in a bank for over one year. D. any deposit of at least $100,000 left on deposit at a bank for a specified period of time.