Government fiscal policy involves changing which of the following?
A. Interest rates.
B. Taxes and government spending.
C. Regulations on business.
D. The amount of money in circulation.
Answer: B
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Rapid growth in M2 is likely to lead to ________
A) low demand for labor B) high levels of inflation C) low levels of investment D) high real interest rates
A statistical tool used to measure inequality is
A) the absolute poverty rate. B) the relative poverty rate. C) the Lorenz curve. D) the Gini coefficient.
An important source of short-term funds for commercial banks are ________ which can be resold on the secondary market
A) negotiable CDs B) commercial paper C) mortgage-backed securities D) municipal bonds
Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase. This increase in the price of the good results in
A) a rightward shift of the supply curve. B) an increase in quantity supplied. C) a leftward shift of the supply curve. D) a downward movement along the supply curve.