Composites of stock prices
A. are completely random and unpredictable.
B. fluctuate randomly around a rising trend.
C. are destabilized by speculations.
D. show no trend but fluctuate widely.
Answer: B
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When the Federal Reserve increases the federal funds rate, bank loans ________, the supply of loanable funds ________, and the real interest rate ________
A) increase; increases; falls B) decrease; decreases; rises C) increase; increases; rises D) do not change; decreases; rises E) decrease; does not change; rises
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.