"If the Federal Reserve raises interest rates, demand for housing is likely to fall" is a ________ statement about ________ policy.
A. positive; monetary
B. normative; fiscal
C. normative; monetary
D. positive; fiscal
Answer: A
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Which of the following was not one of Malthus assumptions?
a. stable prices b. production with only two inputs - land and labor c. a fixed supply of land d. human desire to increase the population
The open-economy macroeconomic model includes
a. only the market for loanable funds. b. only the market for foreign-currency exchange. c. both the market for loanable funds and the market for foreign-currency exchange. d. neither the market for loanable funds nor the market for foreign-currency exchange.
When a market is corrected for externalities, it:
A. is equitable and makes everyone better off. B. is efficient and maximizes surplus. C. needs government regulation to maintain. D. All of these statements are true.
In 2001 a combination of tax cuts and increased defense spending did not have the same inflationary effect as the similar policy in the 1960s. Explain the difference.
What will be an ideal response?