Your textbook uses the "bite, chew, choke" story to explain
A) how restrictive monetary policy leads to a recession.
B) how expansionary monetary policy ultimately leads to a recession.
C) how restrictive fiscal policy leads to a recession.
D) how expansionary fiscal policy ultimately leads to a recession.
B
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Which of the following statements is true?
A) If households expect higher taxes in the future, they will decrease their current savings rate. B) The savings rate of households is dependent only on current consumption expenditure. C) The savings rate of households is dependent only on consumption expenditure planned for the future. D) If households expect higher taxes in the future, they will increase their current savings rate.
If the Fed promises to conduct a(n) ________ for several years, inflation expectation will be ________
A) contractionary fiscal policy; high B) expansionary monetary policy; high C) contractionary monetary policy; high D) expansionary fiscal policy; low
The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does not include ________
A) income; wealth; wealth; human capital B) wealth; income; income; holdings of real estate C) wealth; income; income; human capital D) income; wealth; wealth; employment information
Suppose a perfectly competitive cotton farmer can produce 10 containers of cotton at an output at which marginal cost equals marginal revenue. The price per container of cotton is $100 and the average total cost is $75
What is the profit or loss that this cotton farmer is earning? A) $750 B) $150 C) $250 D) -$25