If Businesses React to a Pessimistic Outlook and Decrease Spending

question 42

Multiple Choice

If businesses react to a pessimistic outlook and decrease spending, the Fed can counteract this by

• A) decreasing money supply to spur the economy out of the recession.
• B) increasing money supply, lowering real interest rates, and encouraging borrowing.
• C) increasing government expenditures to spur the economy out of the recession.
• D) decreasing corporate taxes to encourage firms to increase their spending.

Identify scenarios where monopolies generate deadweight loss and understand efficiency implications.

Recognize the role of public companies vs private companies in market performance.

Understand the effects and limitations of mood stabilizers in the treatment of bipolar disorder.

Identify the first drugs developed for major classes of psychiatric medications.