A basic feature of the classical system of self-regulating markets was that
A. overproduction and unemployment would cause prices and wage rates to increase.
B. flexible wages and prices would eliminate unemployment and overproduction.
C. overproduction would never occur.
D. an increase in saving would cause an increase in the interest rate and a decrease in investment spending.
B. flexible wages and prices would eliminate unemployment and overproduction.
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In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many orange growers were not able to supply fruit to the market
If, following the hurricane, the price remained at its pre-hurricane level, we would expect to see A) a surplus of oranges. B) a shortage of oranges. C) an increase in the demand for oranges. D) the quantity demanded equal to the quantity supplied.
The most common type of interest-rate swap is
A) the plain vanilla swap. B) the basic swap. C) the ordinary swap. D) the notional swap.
The market structure in which each firm has a monopoly over the product it makes, but many other firms make similar products that compete for the same customers is called
When everyone correctly anticipates that the Fed will buy government securities, then they know that prices will increase. Which of the following adjustments is not likely to occur?
A) Workers will negotiate higher wages. B) Suppliers of resources will demand higher prices for their resources. C) Producers will prevent the price level from increasing and hurting their sales. D) Producers will raise prices.