To decrease the interest rate the Federal Reserve could

a. buy bonds. The fall in the interest rate would increase investment spending.
b. buy bonds. The fall in the interest rate would decrease investment spending.
c. sell bonds. The fall in the interest rate would increase investment spending
d. sell bonds. The fall in the interest rate would decrease investment spending.


a

Economics

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A. 5 B. 4 C. 3 D. 2

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An interest rate ceiling is likely to cause

a. inflation b. optimal allocation of investment c. increased opportunities for poor people to get loans d. higher savings e. all of the above

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Which of the following is not a public good?

a. a coastal lighthouse b. national defense c. a flood-control levee d. the latest Walt Disney movie

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According to international trade theory

A. every country has a comparative advantage in something. B. comparative advantage is based on absolute advantage. C. less developed countries cannot trade successfully with developed countries. D. trade is based on absolute advantage.

Economics