Which of the following actions could be undertaken if the government wants to reduce an inflationary gap?
A) Increase taxes and reduce government spending.
B) Reduce taxes and increase government spending.
C) Increase taxes and increase government spending.
D) Reduce taxes and reduce government spending.
B) Reduce taxes and increase government spending.
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In the figure above, the price of bonds would fall from P1 to P2 when
A) inflation is expected to increase in the future. B) interest rates are expected to fall in the future. C) the expected return on bonds relative to other assets is expected to increase in the future. D) the riskiness of bonds falls relative to other assets.
The flypaper effect is _____
a. that government grants get shifted around to other uses b. that government grants get spent on what they were intended to be spent on c. that government grants are used to lower tax rates d. that government grants are not used by local governments
Which of the following would not be considered a characteristic of money?
A. It is a means of payment. B. It is a unit of account. C. It must have intrinsic value. D. It is a store of value.
“The long-run industry supply curve in a constant-cost industry graphs as a horizontal line.” Explain
What will be an ideal response?