If the economy is underutilizing its economic resources, the Fed should
A) discourage investment spending.
B) expand the money supply to increase aggregate demand.
C) decrease aggregate supply.
D) contract the money supply to decrease aggregate demand.
B
Economics
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The number of highly skilled and knowledge workers entering the workforce increases when
(a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above
Economics
If OPEC is an effective cartel,
A. its members set Price =MC. B. its members set Price=MR. C. members agree on output quotas. D. oil prices will be lower than if the market functioned competitively.
Economics