A problem with using fiscal policy to fine-tune the economy is that
A) agreeing on the appropriate fiscal policy is time consuming.
B) fiscal policy impacts the economy too fast.
C) fiscal policy impacts only urban areas of the nation.
D) fiscal policy impacts only the largest states in the nation.
Answer: A) agreeing on the appropriate fiscal policy is time consuming.
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When own-price elasticity lies between 0 and -1, consumer spending decreases when price increases.
Answer the following statement true (T) or false (F)
If the price elasticity of demand for a good is 1, then a 3 percent decrease in price results in a
a. 0.1 percent increase in the quantity demanded. b. 1 percent increase in the quantity demanded. c. 3 percent increase in the quantity demanded. d. 4 percent increase in the quantity demanded.
Which of the following is not a reason to hold stock?
A. To receive potential capital gains. B. To receive payments on the firm's debt. C. To take part in the selection of the board of directors. D. To receive potential dividends.
Describe the three basic tools used by the Fed to change the money supply. Which of these tools is most relied on in practice? Least relied on? Why?
What will be an ideal response?