A government policy that is consistent with real business cycle theory would be for
A) government to vary its spending in response to shocks to total factor productivity.
B) the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity.
C) government to smooth out tax distortions over time.
D) government to vary its lump-sum tax collections in response to changes in total factor productivity.
C
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Deadweight losses are the only potential cost associated with tariffs, which is why they are preferred to quotas
Indicate whether the statement is true or false
About what percentage of marketable national debt is held by foreigners?
A) 5 percent B) 15 percent C) 25 percent D) 50 percent
In an open economy, how many TVs will this country import?
A. 120,000 B. 60,000 C. 30,000 D. 90,000
Consumers will ________ interest-sensitive consumption spending, when interest rates are higher
Fill in the blank(s) with the appropriate word(s).