According to the assumptions of the quantity theory of money, if the money supply decreases by 7 percent, then
a. nominal and real GDP would fall by 7 percent.
b. nominal GDP would fall by 7 percent; real GDP would be unchanged.
c. nominal GDP would be unchanged; real GDP would fall by 7 percent.
d. neither nominal GDP nor real GDP would change.
b
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What is a problem with command-and-control policies?
a. It provides too much flexibility for firms to determine the best way to reduce their pollution. b. There are strong incentives to lower costs of reducing pollution. c. It is not the most efficient method for reducing pollution. d. There is strong agreement as to what are the correct policies.
Government can support agricultural prices by
A. paying farmers not to produce in particular fields. B. paying farmers not to produce in particular fields and making it illegal to consume more than a specified amount. C. lending farmers enough at subsidized interest rates to expand their production. D. making it illegal to consume more than a specified amount.
Deliberate manipulation of government spending and taxes to promote macroeconomic goals is effected by _____
Fill in the blank(s) with the appropriate word(s).
The poverty rate in the United States has been growing for people over age 65.
Answer the following statement true (T) or false (F)