If there is unplanned inventory decumulation there is excess
A) demand for bonds.
B) supply of bonds.
C) demand for commodities.
D) supply of commodities.
C
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The essence of the monetarists view on crowding out is that higher government spending which is not financed by new money creation simply
A) reduces private spending by an equal amount. B) decreases the demand for money. C) increases investment. D) increases aggregate demand in the in the long run.
An import quota is:
A. a tax on the good or services that are imported. B. a limit on the amount of a particular good that can be exported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
Deficit targeting acts as ________ because it requires taxes to be raised and government spending to be cut during ________.
A. an automatic stabilizer; an expansion B. an automatic stabilizer; a contraction C. an automatic destabilizer; an expansion D. an automatic destabilizer; a contraction
A monopolistically competitive firm that is incurring a loss will produce in the short run as long as the revenue the firm receives is sufficient to cover
A. advertising costs. B. marginal costs. C. variable costs. D. fixed costs.