The Fed can raise the discount rate when it wants to:
a. decrease the money supply.
b. increase the money supply.
c. decrease the budget deficit.
d. increase the budget deficit.
a
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Supply-side economics
A) promotes increasing taxes to create additional revenue for government spending. B) promotes expansionary fiscal policy by increasing government spending. C) is based on the Ricardian equivalence theorem. D) promotes reducing taxes to create incentives to increase productivity.
When people by insurance they often adopt risky behavior. This is an example of
A) adverse selection. B) moral hazard. C) a negative externality. D) moral hazard and a negative externality.
The Institutional Possibilities Frontier measures:
a. productive potential b. the production possibilities frontier c. the tradeoff between private order and dictatorial disorder d. the dictator's opportunity costs e. the tradeoff between private markets and dictatorial orders.
Graphically, an increase in demand is represented by
A. an upward movement (from right to left) along a given demand curve. B. an outward shift of the demand curve. C. an inward shift of the demand curve. D. a downward movement (from left to right) along a given demand curve.