When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy.
B. contractionary monetary and fiscal policies.
C. expansionary monetary and fiscal policies.
D. a contractionary monetary policy and an expansionary fiscal policy.
Answer: B
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Suppose the Good Food supermarket increases the price of a pound of bananas from $.75 to $1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000 . The price elasticity of demand coefficient for bananas in this price range is:
a. 0.80 b. 3.00. c. 2.00 d. 0.50.
Which of the following questions would not be studied by a microeconomist but would be studied by a macroeconomist?
a. Why do national economies grow? b. What percentage of consumer income is spent on entertainment? c. Why do workers prefer the 4-day workweek? d. How is the electric industry harmed by the passage of new clean air legislation?
An improvement in a firm's technology that reduces its production costs will result in a(n):
A. leftward shift of the supply curve. B. increase in supply. C. decrease in quantity supplied at any given price. D. an increase in demand.
What limits an unregulated bank's ability to go on creating money indefinitely?
What will be an ideal response?