The U.S. economy is relatively open in terms of economic activity related to international trade.
Answer the following statement true (T) or false (F)
False
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The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as:
A) institutional destruction. B) polarization. C) division of powers. D) political creative destruction.
When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
a. Fixed-cost fallacy b. Sunk-cost fallacy c. Hidden-cost fallacy d. None of the above
One of the consequences of allowing wages to fall in the United States has been growing wage inequality
a. True b. False Indicate whether the statement is true or false
Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to decrease aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 5%, then the Federal Reserve should ________ bonds on the open market equal to ________.
A. buy, $4 billion B. sell, $4 billion C. sell, $2 billion D. buy, $2 billion