Reducing the fed funds rate can increase GDP in the short term because at lower interest rates
A. households will attempt to save more.
B. taxes are lower, which increases disposable income.
C. Individuals and businesses will want to borrow and spend more.
D. banks will earn greater profits on loans.
Answer: C
Economics
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The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Employment will fall by
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.
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The first antitrust law passed was the ________
A) Federal Trade Commission Act B) Sherman Act C) Clayton Act D) Robinson-Patman Amendment
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