During a recession:
a. Government spending automatically rises and taxes automatically rise.
b. Government spending automatically falls and taxes automatically rise.
c. Government spending rises automatically and taxes fall automatically.
d. Government spending and taxes do not tend to change.
e. None of the above.
.C
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In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by 5%; remain unchanged; remain unchanged B) increase by less then 5%; decrease; increase C) increase by more then 5%; increase; remain unchanged D) remain constant; increase; increase E) remain constant; decrease; decrease
What are stock market margin requirements, and how and why does the Fed control them?