The implementation lag for fiscal policy tends to be much longer than for monetary policy because fiscal policy requires
A. changes in congressional-approved spending and tax programs.
B. changes in required reserves.
C. changes in open-market operations.
D. changes in exports and imports.
Answer: A
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If the MPC is 0.75, the multiplier is equal to
A) 5. B) 0.75/0.25 = 3. C) 0.25. D) 4.
Government intervention
a. provides incentives to conduct business in an illegal black market b. plays no role in generating wealth c. is the best way to eliminate poverty d. does not enforce property rights
With the financial revolution in the late twentieth century and the resultant increase in the importance and complexity of risk management, it became essential for divisionalized firms to decentralize risk assessment
Indicate whether the statement is true or false
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. MR is higher than MC. B. MC is higher than MR. C. ATC is lower than AVC. D. the firm would lose profits producing the units.