If the Fed decreases the money supply, the interest rate
a. decreases and aggregate spending increases.
b. decreases and aggregate spending decreases.
c. increases and aggregate spending decreases.
d. increases and aggregate spending increases.
e. increases and money demand decreases.
C
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The form of economic organization in which individuals may own private property but in which the government owns and operates productive resources is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
Is the claim that environmental standards reduce industrial competitiveness valid?
A) Yes, because environmental standards raise costs to businesses. B) No, because consumers will want to buy from firms that pollute less. C) No, because environmental standards have little effect in high-income countries. D) Yes, because environmental standards will cause the imposition of WTO sanctions.