The purpose of a tight money policy is to
A. alleviate recessions.
B. raise interest rates and restrict the availability of bank credit.
C. run budget surpluses.
D. increase investment spending.
B. raise interest rates and restrict the availability of bank credit.
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The largest component of national income is:
A) compensation of employees B) proprietor's income C) rental income D) corporate profits
The consumer wants to work because he/she
A) is told to work. B) likes to work. C) likes leisure. D) wants the income.
If Stephanie buys a laptop for $700 and the maximum she would have paid was $1,000, which of the following is true?
a. Stephanie received consumer surplus of $1,000. b. Stephanie received producer surplus of $700. c. Stephanie received a consumer surplus of $700. d. Stephanie received a consumer surplus of $300.
The primary goal of expansionary monetary policy is to:
A. decrease the interest rate B. increase the interest rate C. decrease the money supply D. increase government purchase