An increase in the required reserve ratio by the Federal Reserve would:
A. cause M1 to contract.
B. cause M1 to expand.
C. have no effect on M1 or M2.
D. affect only M2, not M1.
Answer: A
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Reducing environmental pollution beyond the socially optimal amount increases society's welfare
a. True b. False Indicate whether the statement is true or false
The idea that all potentially available alternatives can be ordered according to a consumer's preferences is called:
A. the consumption principle. B. the ranking principle. C. the choice principle. D. the more-is-better principle.
Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing
A. Taxes by more than $600 billion. B. Government spending by exactly $600 billion. C. Government spending by less than $600 billion. D. Taxes by exactly $600 billion.
Each of the following is a provision of the 1996 welfare reform law except that
A. lifetime welfare benefits would be limited to five years. B. each state receives a lump sum to run its own welfare and work programs. C. any adult found guilty of a felony would be removed from the welfare rolls. D. future legal immigrants are banned from welfare assistance.