In the bond market, the bond demanders are the ________ and the bond suppliers are the ________
A) lenders; borrowers
B) lenders; advancers
C) borrowers; lenders
D) borrowers; advancers
A
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Taxing people according to their marginal valuations of a public good may be efficient, but it may not be fair if incomes differ
Indicate whether the statement is true or false
Money illusion occurs when we compare dollar amounts
A. without adjusting for inflation. B. between two years. C. without adjusting for technology. D. between the CPI and the GDP.
Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then the Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?
(a) Increase / Increase / Decrease / Increase (b) Increase / Decrease / Decrease / no change (c) Increase / Decrease / Increase / Decrease (d) Decrease / Increase / no change / Increase (e) Increase / Decrease / Decrease / Increase
What is likely to happen to the labor market equilibrium for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?
A. The number of firemen employed will increase while firemen wages will increase. B. The number of firemen employed will decrease while firemen wages will increase. C. The number of firemen employed will increase while firemen wages will decrease. D. The number of firemen employed will remain the same while firemen wages will increase. E. The number of firemen employed will decrease while firemen wages will decrease.