The contemporary consensus with regard to stabilization policy is that
a. fiscal policy is, for now, the "only game in town."
b. fiscal policy is more effective than monetary policy.
c. monetary policy is, for now, the "only game in town."
d. monetary policy is slightly more effective than fiscal policy.
c
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If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that
A) demand decreased. B) supply decreased. C) supply increased. D) demand increased.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Much did the U.S. Congress allocate to the Troubled Asset Relief Program in 2008?
A. $170 billion. B. $700 billion. C. $787 billion. D. $885 billion.
Suppose Frank is considering purchasing an asset that will have a future value of $1000 in 7 years. The interest rate is 6% and the price of the asset is $600. Should Frank buy the asset? Why or why not?
What will be an ideal response?