Open market sales of bonds by the Federal Reserve do not have a direct effect on the government budget
a. True
b. False
A
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Which of the following policy combinations were used by the government during the financial crisis of 2007-2009 in the U.S.?
A) Income tax rates were increased and payroll taxes were reduced. B) Payroll tax rates were increased and government spending was reduced. C) A combination of both fiscal and monetary policies were used. D) The eligibility period for unemployment insurance was shortened.
How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers
What will be an ideal response?
Perfect competition is a market structure in which there is:
a. a contest among firms to provide good service after the sale. b. competition in product quality. c. rivalry in product design. d. none of these.
According to the simple quantity theory of money, if the money supply falls by 20 percent,
A) the price level will fall by 20 percent. B) Real GDP will rise by less than 20 percent. C) GDP will fall by 20 percent. D) velocity will rise. E) a and c