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26) When the central bank engages in Quantative Easing:         a

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26) When the central bank engages in Quantative Easing:  
  
   a. it buys financial assets that it normally does not
  
   b. it can still lower the interest rate that banks charge each other for overnight loans of reserves
  
   c. it expands its balance sheet
  
   d. both (a) and (c)
  
  
  
Question 27  
  
27) Automatic Stabilizers in the government budget:  
  
   a. result in a decrease in tax revenues and increase in government spending on Social Services during a recession
  
   .b. result in an increase in tax revenues and a decrease in government spending on Social Services during an expansion
  
   c. have no effect on government tax revenue nor government spending on Social Services
  
   d. both (a) and (b)
  
  
  
Question 28  
  
28) Which of the following would increase short-run Aggregate Supply (AS) in the economy:  
  
   a, increased worker productivity
  
   b. cut corporate tax rates to encourge investment in new economic capital
  
   c. reduce unnecesary government regulations and red tape
  
   d. all of the above
  
  
  
Question 29  
  
29) In a customs union:  
  
   a. there is the free movement of goods and services among member countries, but not capital (money)
  
   b, there is free trade in goods and services among member countries but each individual member determines its own trade policies with non-member countries
  
   c.there is free trade among members and a common trade policy with non-members
  
   d. member countries determine their own trade policies with each other
  
  
  
Question 30  
  
29) Countries engage in protectionism to:  
  
   a. protect infant industries
  
   b. retaliate against protectionist measures of other countries
  
   c. to protect strategic inductries
  
   d. all of the above