Refer to Figure 26-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) an open market sale of Treasury bills
C) an open market purchase of Treasury bills D) a decrease in income taxes
C
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During the 1990s, many companies shifted from
A. the Mform to product-oriented organizations. B. the Mform to functional subunits. C. product-oriented organizations to functional subunits. D. functional subunits toward more product-oriented organizations.
Economic studies of lottery winners and people who have inherited large amounts of money show that
a. the income effect of winning the lottery or inheriting large amounts of money likely outweighs the substitution effect for most people. b. the substitution effect of winning the lottery or inheriting large amounts of money likely outweighs the income effect for most people. c. most people view leisure as an inferior good. d. most people's labor supply is unaffected by changes in wealth.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
If we include cash benefits and in-kind benefits available to low-income people, the share of the U.S. population in poverty
A. increases somewhat. B. drops dramatically. C. increases dramatically. D. does not change.