Which of the following would be considered an example of monetary policy?
A. Provision of additional cash to the banking system.
B. A reduction in income tax rates.
C. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries.
D. A decision by a developing country to reduce government control of the economy and to become more market-oriented.
Answer: A
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Who pays the interest on government debt for the money it borrows today?
A) future generations of taxpayers B) the Congressional Budget Office C) the Federal Reserve D) The government does not pay interest on money it borrows.
Suppose a decrease in price increases quantity demanded from 8 to 12. Using the mid-point formula, the percentage change in quantity demanded is:
A. 0.1, and is elastic. B. 40 = 400 percent. C. 0.40 = 40 percent. D. 0.40 = 40 percent.
If there is a low degree of uncertainty combined with a low degree of asset specificity, _____ will be efficient
a. long-term contracts b. short-term contracts c. market transactions d. vertical integration
Which of the following are economic themes considered in macroeconomics?
a. A firm's output b. The level of prices in the economy c. The unemployment rate d. A firm's income or total revenues e. National income