Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions.
B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions.
C) does not try to eliminate recessions, but instead focuses on preventing inflation.
D) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
D
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Retailers do not find it profitable to engage in promotional activities because
a. They cannot reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are unaware of competing retailers' ability to "free ride" on their efforts d. All of the above
Imagine that there are only two nations in the world, the United States and Mexico. If Americans buy more goods made in Mexico, other things constant, the
a. U.S. demand curve for Mexican pesos will shift rightward b. U.S. demand curve for Mexican pesos will shift leftward c. U.S. supply curve of Mexican pesos will shift leftward d. U.S. supply curve of Mexican pesos will shift rightward e. U.S. supply curve of Mexican pesos will shift upward