________________ fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes.
a. Expansionary
b. Contractionary
c. Lenient
d. Strict
b. Contractionary
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What information does the government need to support an assertion that the 20-unit abatement standard is allocatively efficient?
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
A home theater system and an HD television would be considered an example of:
A) substitute goods. B) giffen goods. C) inferior goods. D) complementary goods.
The German central bank in the European Monetary System, 1979-1998
A) was very inflation-averse. B) was moderately inflation-averse. C) was willing to accept inflation. D) lacked control over inflation since it had fixed its exchange rate. E) lacked sufficient reserves.
A bank is said to be recapitalized when some investor, private or government, provides new equity capital in return for partial ownership.
Answer the following statement true (T) or false (F)