In order to influence the interest rate, the Federal Reserve System can immediately adjust the
A) reserves of the banking system.
B) inflation level.
C) unemployment rate.
D) taxes that citizens must pay.
E) amount the government borrows.
A
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A monopolistically competitive firm will end up selling its output for a price such that its
A) price is greater than marginal cost. B) price is equal to marginal cost. C) price is equal to marginal revenue. D) price is equal to average total cost.
What effect would a Federal balanced budget requirement have on automatic stabilizers?
a. They would be stopped because in a recession automatic stabilizers increase the deficit by automatic spending. b. They would be stopped because in a recession automatic stabilizers decrease the deficit by automatic spending. c. They would become more important because in a recession they would increase spending and taxes automatically. d. They would become more important because in a recession they would decrease spending and taxes automatically.
The economy of North Korea would best be classified as:
a. A laissez-faire economy b. A command system c. A market system d. A capitalist economy
If the slope of a curve is 1/3, we know that
A. the relationship is non-linear, and the line moves from lower left to upper right. B. the relationship is linear, and the line moves from upper left to lower right. C. the relationship is linear, and the line moves from lower left to upper right. D. the relationship is non-linear, and the line moves from upper left to lower right.