The Fed tried to reduce unemployment in the years following the recession of 2001 by:
A. reducing the growth rate of the money supply.
B. increasing government spending on construction projects.
C. keeping the Federal funds rate very low.
D. raising the reserve requirement for banks.
Ans: C. keeping the Federal funds rate very low.
Economics
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The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons
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The classical approach to a downturn in the business cycle was for the government to do nothing
a. True b. False Indicate whether the statement is true or false
Economics