President George W. Bush, who favored a smaller government sector,
A. believed we should increase G to eliminate a recessionary gap.
B. believed we should raise taxes to eliminate an inflationary gap.
C. favored an active fiscal policy just as well as those who favor a larger government sector.
D. argued against the use of an active fiscal policy.
Answer: C
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If people expect the price of a stock to rise in future, the demand curve for the stock:
a. becomes positively sloped. b. shifts to the right. c. becomes horizontal. d. becomes vertical. e. shifts to the left.
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
The opportunity set contains:
a. a single combination of consumption that someone can afford given the prices of goods and the individual’s income. b. all possible combinations of consumption that someone can afford given the prices of goods regardless of the individual’s income. c. all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income. d. a single combination of consumption that someone can afford given the prices of goods regardless of the individual’s income.
Demand for inputs is a derived demand because
a. it is derived from the need for income. b. it corresponds to the derived supply of the inputs. c. producers want the input to produce the finished good. d. it is downward sloping.