Refer to Scenario 25-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.
D
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How Monetary Policy Affects the Interest Rate?
The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line
A) Investors A and B are equally risk averse. B) Investor A is more risk averse than investor B. C) Investor A is less risk averse than investor B. D) It is not possible to say anything about the risk aversion of the two investors, but they will hold the same portfolio. E) It is not possible to say anything about either the risk aversion or the portfolio of the two investors.
Suppose a country had a smaller increase in debt in 2011 than it had in 2010 . Then other things the same, we would expect
a. lower interest rates and investment in 2011 than in 2010. b. lower interest rates and greater investment in 2011 than in 2010. c. higher interest rates and greater investment in 2011 than in 2010. d. higher interest rates and lower investment in 2011 than in 2010.
Discretionary fiscal policy refers to:
A. any change in government spending or taxes that destabilizes the economy. B. the authority that the president has to change personal income tax rates. C. intentional changes in taxes and government expenditures made by Congress to stabilize the economy. D. the changes in taxes and transfers that occur as GDP changes.