If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
a. Increased government spending or decreased taxation, or a combination of the two actions
b. Decreased government spending or decreased taxation, or a combination of the two actions
c. Increased government spending or increased taxation, but not a combination of the two actions
d. Increased government spending or increased taxation, or a combination of the two actions
a. Increased government spending or decreased taxation, or a combination of the two actions
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In the above figure, if the price is $1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________
A) $3.125 million; $3.125 million B) $12.5 million; $12.5 million C) $6.25 million; $6.25 million D) None of the above answers are correct.
Suppose that a series of decisions by banks effectively raises e. The resulting ________ in the money supply could be offset by the Fed with a "defensive" open market ________ of government securities
A) rise, purchase B) rise, sale C) fall, purchase D) fall, sale
Under the Fed's current interest-rate-targeting approach to monetary policy, if the demand for federal funds by depository institutions increases today, then, other things being equal
A) the market federal funds rate decreases, and the Fed's Trading Desk responds by selling bonds. B) the market federal funds rate increases, and the Fed's Trading Desk responds by buying bonds. C) the market federal funds rate decreases, and the Fed's Trading Desk responds by buying bonds. D) the market federal funds rate increases, and the Fed's Trading Desk responds by selling bonds.
The more complicated the process used to produce a good,
a. the greater are the transaction costs of organizing production through markets b. the lower are the transaction costs of organizing production through markets c. the less likely a firm will use administrative controls to organize the production process d. the more likely a firm will use the market to organize the production process e. the more likely consumers will choose to purchase the good over other alternatives in the market