All industrialized countries have become “service economies.” Which factor helps explain this shift?

A. Trade unionism and failure of the manufacturing sector to grow
B. Information age and laborsaving innovation in manufacturing
C. The decline in the number of workers possessing the required skills for industrial production
D. The lack of competition in the service sector

Answer: B

Economics

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If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response?

a. decreasing government spending b. decreasing the discount rate c. decreasing reserve requirements d. none of the above

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