If the Fed decreases the money supply, we should expect the interest rate
a. to fall, spending on automobiles and business investment spending to rise, and the price of bonds to increase
b. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to decrease
c. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to increase
d. to fall, spending on automobiles and business investment spending to fall, and the price of bonds to decrease
e. to rise, spending on automobiles to fall, business investment to rise, and the price of bonds to decrease
B
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The argument that jobs are lost to free trade is
A) correct because jobs are lost but foreign countries are helped and we can afford losses. B) totally false because no jobs are lost to free trade. C) somewhat correct because some jobs are lost but incorrect because new jobs also are created. D) true only when tariffs are imposed on the goods being imported. E) incorrect because no jobs are lost and new jobs are created by trade.
In the vertical segment of the aggregate supply curve,
a. different levels of GDP correspond with high unemployment. b. competition among producers for already-employed resources can succeed only in lowering the economy's price level. c. full employment is achieved. d. producers are able to hire more workers at lower wages. e. increases in GDP are due solely to production gains.