(I) A monetary policy that results in price stability will encourage the realization of gains from trade and thereby help promote economic growth. (II) High tariffs and restrictive quotas will encourage rapid economic growth
a. I is true; II is false.
b. II is true; I is false.
c. Both I and II are true.
d. Both I and II are false.
A
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Points on the utility possibility frontier are
A. inefficient. B. points of incomplete preferences. C. not producible. D. Pareto.
If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
A. increase by $50. B. decrease by $50. C. increase by $200. D. decrease by $200.
An indifference curve:
A. may be either upsloping or downsloping, depending on whether the two products are complements or substitutes. B. is downsloping and convex to the origin. C. is upsloping and has a constant slope. D. is downsloping and concave to the origin.
Which of the following would provide an incentive to increase the amount of beef consumed?
A) a decrease in the price of beef B) a tax on beef sales C) promotion of chicken consumption D) a ban on beef sales by the Food and Drug Administration