The quantity theory of money states explicitly that the:
A. money supply is determined by the price level.
B. there is no relationship between the value of money and the quantity of money in existence.
C. value of money is determined by the overall quantity of money in existence.
D. Real GDP is determined by the money supply.
Answer: C
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An example of entitlement spending is:
A. national defense. B. Social Security. C. police protection. D. garbage collection.
Which of the following is infrastructure?
a. Training and education b. Police c. Highways d. All of the answers are correct.
Activist fiscal policies:
A. usually produce budget deficits. B. generally produce balanced budgets. C. do not have any systematic effect on budget surpluses or deficits. D. usually produce budget surpluses.
Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. Jane spends her entire income when she purchases ________ units of clothing and ________ units of food.
A. 16; 8 B. 12; 20 C. 25; 5 D. 10; 10