A decline in taxes ________ consumer expenditure and shifts the ________ curve to the ________, everything else held constant
A) raises; LM; right
B) lowers; IS; left
C) raises; IS; right
D) lowers; LM; left
C
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During this year, Barbara earned $60,000 as a financial analyst, paid taxes of $5,000 and consumed $53,000. If Barbara's wealth was $4,000 at the beginning of the year, at the end of the year Barbara's wealth was
A) $6,000. B) $60,000. C) $2,000. D) $4,000. E) $5,000.
________ imposes a conceptual structure and inherent discipline on policy makers, but without eliminating all flexibility
A) Constrained discretion B) A policy rule C) A discretionary policy D) The Taylor rule
If the Taylor Principle is not followed and nominal interest rates are increased by less than the increase in the inflation rate, then real interest rates will ________ and monetary policy will be too ________
A) rise; tight B) rise; loose C) fall; tight D) fall; loose
Which of the following is a fixed cost of preparing meals?
a. dishwasher detergent b. chicken c. salad d. a microwave oven e. electricity