Stable money and prices are a key source of economic growth because
a. they allow activist policymakers to fine tune the economy.
b. uncertainty and instability in prices will attract investors and business decision makers.
c. price instability increases capital formation.
d. price stability reduces the risks that accompany investment and other long-term commitments.
D
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The slope of a line
A) can never equal zero. B) is always a constant. C) measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. D) measures the value of the y-axis variable relative to the value of the x-axis variable.
Explain the difference between minimum wage and subsidies as a way to help low-income people. Identify disadvantages of each.
What will be an ideal response?
Find the tax multiplier if the MPC is 0.75.
A. ?4. B. ?3. C. 0.33. D. 3.
According to the classical economists, actual real GDP
A. never equals actual aggregate income. B. is not related to aggregate income. C. always equals actual aggregate income. D. sometimes equals actual aggregate income.