Which of the following would lead the Fed to increase the money supply under an interest rate rule?
a. an unexplained decrease of money demand
b. an increase in taxes
c. a decrease in spending that caused the money demand curve to decrease
d. an increase in spending that caused the money demand curve to increase
e. a decrease in government spending
D
You might also like to view...
Exhibit 30-5
?
A. Q1. B. Q2. C. Q1 - Q2. D. Q2 - Q1.
The best way to evaluate the effect of a specific tax is _____
a. to consider the tax in isolation b. to consider the tax in the context of the entire tax system c. to consider whether a tax is progressive, regressive, or proportional d. a and c
Marcus says that he would smoke one pack of cigarettes each day regardless of the price. If he is telling the truth, Marcus's
a. demand for cigarettes is perfectly inelastic. b. price elasticity of demand for cigarettes is infinite. c. income elasticity of demand for cigarettes is 0. d. More than one of the above is correct.
Today, the share of international trade in U.S. GDP is
A. about 30 percent. B. almost 0 percent. C. more than 150 percent. D. about 16 percent.