Which combination of monetary and fiscal policies might policymakers elect to ward off potential inflation?
A) Fed purchase of bonds combined with tax rate increases
B) Fed purchase of bonds combined with tax rate decreases
C) Fed sale of bonds combined with tax rate increases
D) Fed sale of bonds combined with tax rate decreases
C
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Most U.S. firms face:
A. perfect competition. B. some degree of competition. C. market power resting in a few large firms in every industry. D. no competition at all.
Steak and chicken are substitutes. A sharp reduction in the supply of steak would
a. increase consumer surplus in the market for steak and decrease producer surplus in the market for chicken. b. increase consumer surplus in the market for steak and increase producer surplus in the market for chicken. c. decrease consumer surplus in the market for steak and increase producer surplus in the market for chicken. d. decrease consumer surplus in the market for steak and decrease producer surplus in the market for chicken.
The money multiplier determines how much
A) real GDP will be expanded given an increase in autonomous investment. B) the monetary base will be expanded given a change in the quantity of money. C) the quantity of money will be expanded given a change in the monetary base. D) money demand will expand given a change in the quantity of money.
A country's balance of payments records
A. the prices that a country pays for its imports and the prices that the country receives for its imports. B. the value of a country's holdings of foreign assets, minus the value of foreign holdings of the country's assets. C. capital gains and losses on a country's international assets. D. the flows of value between that country's residents and residents of the rest of the world during a period of time.