Under laissez faire, the allocation of resources among different products depends on
a. consumer preferences.
b. production costs.
c. Both a and b are correct.
d. Neither a nor b is correct.
c
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When regulators chose to allow insolvent S&Ls to continue to operate rather than to close them, they were pursuing a policy of
A) regulatory forbearance. B) regulatory kindness. C) ostrich reasoning. D) ignorance reasoning.
If deficit spending causes an increase in economic activity, it may "crowd in" some potential investment spending
a. True b. False Indicate whether the statement is true or false
No one knew exactly how bad the balance sheets at some of these financial institutions really were
What will be an ideal response?
A decrease in aggregate demand in the short run will reduce ________.
A. the price level and increase the real domestic output B. the real domestic output and have no effect on the price level C. both real output and the price level D. the price level and have no effect on real domestic output