Which of the following is an example of expansionary fiscal policy?
A. Increase taxes.
B. Decrease government spending.
C. Increase government spending.
D. Increase taxes and decrease government spending equally.
Answer: C
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The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect. B) an intertemporal substitution effect. C) an atemporal substitution effect. D) a temporary substitution effect.
Foreign exchange rates tend toward equality around the world because of the actions of
a. central banks b. stock markets c. commodity markets d. the World Bank e. arbitrageurs
If MC = Q/15 represents marginal cost for a monopolist and market demand is given by Qd = 500 - 10P, the monopolist maximizes profit by producing:
A. 500 units of output. B. 187.5 units of output. C. 250 units of output. D. 300 units of output.
The international agency that lends money to DVCs for economic development projects is the:
A. World Bank. B. International Monetary Fund (IMF). C. World Trade Organization (WTO). D. World Credit Union.