In the short run, fiscal and monetary policy cause unemployment and inflation to move in opposite directions because
a. the Fed and Congress rarely agree on policy.
b. one controls aggregate demand, the other controls aggregate supply.
c. both policies control only aggregate supply.
d. both policies control only aggregate demand.
d
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The health care system in ________ is referred to as a single-payer health care system, and is a system in which the government provides national health insurance to all residents
A) Canada B) Japan C) the United Kingdom D) the United States
When the Fed purchases government securities, it
a. increases banks' reserves and makes possible an increase in the money supply b. decreases banks' reserves and makes possible a decrease in the money supply c. automatically raises the discount rate d. uses discounting operations to influence margin requirements e. sends a signal to the banking community that there is too much inflation
Explain the relationship between interest rates and (1) investments in housing, and (2) business investments
If transfer payments are included when evaluating tax burdens, then the average tax rate of the poorest quintile of taxpayers would be approximately
a. negative 30 percent. b. negative 10 percent. c. positive 1 percent. d. positive 8 percent.