Sustained economic growth generally occurs when a nation
A) abandons the market system in favor of central economic planning.
B) abandons the rule of law in favor of a series of licenses, regulations, and tariffs to control and protect the domestic economy.
C) subsidizes loss-generating enterprises and thereby preserves jobs and incomes.
D) creates conditions where people are free to specialize and exchange.
D
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Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?
A) the ability to produce the product at a lower cost B) the number of competitors in the market C) changing consumer tastes D) a rise in the price of a key input, for example, a rise in the price of oil leads to higher energy costs
The Fed tends not to use discount policy as its principal tool in influencing the money supply since
A) discount loans do not affect the money supply. B) it does not have as much control over discount loans as it has on open market operations. C) it is prohibited from doing so by an act of Congress. D) it prefers to use reserve requirements.