The figure above shows Ilene's budget line. The price of a can of cat food is $2. Ilene's income per week is
A) $10.
B) $40.
C) $56.
D) $160.
B
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In the long run, when the Fed increases the quantity of money, the
A) price level falls. B) nominal interest rate falls. C) price level rises. D) real interest rate rises. E) demand for money decreases.
Other nations had tried economic union in the past, and since adopting a common currency had shown economic benefits for them, the nations of Europe decided to try it too
Indicate whether the statement is true or false
Gordon recommends that government macroeconomic policymakers focus on
A) reducing inflation to zero. B) creating a national job finding service to reduce frictional unemployment to near zero. C) creating "enterprise zones" to move jobs to areas of concentrated unemployment. D) programs to match more closely the job skills of the unemployed to those of job vacancies.
Expansionary fiscal policy that raises the budget deficit may:
A. increase business investment by reducing interest rates. B. reduce business investment by reducing interest rates. C. increase business investment by increasing interest rates. D. reduce business investment by increasing interest rates.