Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?
A. Moderate fiscal stimulus, no monetary stimulus
B. Fiscal and monetary tightness
C. Moderate monetary stimulus, fiscal tightness
D. Strong fiscal and monetary stimulus
Answer: D
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If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal utility of wealth ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Estonia?
A) 1/3 of a belt B) 3/5 of a belt C) 1.67 belts D) 3 belts
How many members can serve on the Board of Governors of the Federal Reserve System?
A. 9 B. 7 C. 14 D. 12
A price floor means that:
A. inflation is severe in this particular market. B. sellers are artificially restricting supply to raise price. C. government is imposing a maximum legal price that is typically below the equilibrium price. D. government is imposing a minimum legal price that is typically above the equilibrium price.