Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, so Skyline likely will
a. demand funds from the financial system by buying bonds.
b. demand funds from the financial system by selling bonds.
c. supply funds to the financial system by buying bonds.
d. supply funds to the financial system by selling bonds.
b
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Which of the following best explains how an economy could simultaneously experience high inflation and high unemployment?
A) The government increases spending without increasing taxes B) The government increase taxes without increasing spending C) Inflationary expectations decline D) Women and teenagers stay out of the labor force E) Negative supply shocks cause factor prices to increase
Price reflects the value households place on a good and marginal cost reflects the ________ of the resources needed to produce a good.
A. opportunity cost B. productivity C. availability D. quantity