During a severe recession, appropriate economic policy might include
A. An open market purchase by the Fed, a decrease in the tax rates, or a decrease in the budget deficit.
B. An open market purchase by the Fed, a decrease in the discount rate, or a decrease in government regulation.
C. An open market sale by the Fed, a decrease in the discount rate, or an increase in the budget deficit.
D. A decrease in government spending, a decrease in the discount rate, or a decrease in government regulation.
Answer: B
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If a firm charges each consumer the absolute maximum price that he or she is willing to pay, the firm is practicing
a. perfect price discrimination. b. marginal revenue pricing. c. price discrimination. d. monopoly pricing.
The buyer of a $125,000 home has paid $2,000 as earnest money and has a loan commitment for 70 percent of the purchase price. The balance of the cash the buyer needs to complete the transaction is
A) $3,500. B) $35,500. C) $37,000. D) $37,500.
What happens to the SRAS curve when the aggregate price level increases?
What will be an ideal response?
A seller's willingness to sell:
A. is the maximum price that a seller is willing to accept in exchange for a good or service. B. is the minimum price that a seller is willing to accept in exchange for a good or service. C. is his or her reserved minimum bid-price. D. must always equal the buyer's willingness to buy.