The government's fiscal policy is its plan to influence aggregate demand by changing
a. the money supply.
b. minimum wage levels.
c. sales taxes.
d. taxation and spending.
d
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What is an overvalued exchange rate? What factors may cause a country's currency to become overvalued?
What will be an ideal response?
The increase in tax on state bank notes from 2 to 10 percent provided state banks incentive to
(a) attract more demand deposits and increase the use of checks. (b) increase the amount of state notes and use them to extend bank credit. (c) increase the minting of coins and use them for exchange and lending purposes. (d) all of the above.
A firm experiencing constant economies of scale will have a long-run average cost curve that is:
a. upward sloping b. vertical c. downward sloping d. horizontal
Studies show that the demand curve for peas has shifted. Which of the following explanations would you reject first?
a. The price of string beans has changed. b. The demand for corn has changed. c. The demand for string beans has changed. d. The income of consumers has changed. e. The price of peas has changed.