Economists consider deflation
A. dangerous, as it can lead to a depression.
B. to be a normal part of the economy, not necessarily healthy or unhealthy.
C. to be generally healthy for the economy.
D. to be no better and no worse than inflation.
Answer: A
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In the long run,
a. an increase in the federal budget deficit can lower the interest rate and investment spending. b. an increase in the federal budget deficit can raise the interest rate and investment spending. c. a decrease in the federal budget deficit can lower the interest rate and raise investment spending. d. a decrease in the federal budget deficit can raise the interest rate and lower investment spending. e. a decrease in the federal budget deficit can lower the interest rate and lower investment spending.
Appreciation of the dollar will make imported goods more expensive and shift the aggregate demand curve outward
a. True b. False Indicate whether the statement is true or false
To obtain a discount loan from the Fed, a commercial bank must:
A. provide collateral. B. agree to more frequent examinations. C. prove that the loan will be used to make loans. D. prove that it will fail if it does not obtain the loan.
Collusion occurs when firms ______.
a. behave like perfect competitors b. act as price leaders and price followers c. engage in price discrimination d. act together to restrict competition