All of the following are variables that can be manipulated to affect fiscal policy, except one. Which is the exception?
What will be an ideal response?
the federal funds rate
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The elasticity of supply equals ________ if the supply curve is vertical
A) 0 B) 1 C) infinity D) -1
In the Classical system, the interest rate is determined by all of the following except
A) the thriftiness of the public. B) the money supply. C) the productivity of capital. D) investment.
CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.
A) $1,200. B) $800. C) $500. D) $400.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.