The government wants to encourage consumer spending through cutting income taxes. This is an example of
A. a fiscal policy.
B. a supply-side policy.
C. a monetary policy.
D. an incomes policy.
Answer: A
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The type of unemployment created by the normal rate of reentry and entry into the labor force is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The real risk-free interest rate falls, and nominal value of the domestic currency rises. c. The real risk-free interest rate rises, and nominal value of the domestic currency rises. d. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. e. The real risk-free interest rate falls, and nominal value of the domestic currency falls.
Which statement is true?
A. M1 is larger than M3. B. M2 is about five times the size of M1. C. M3 is three times the size of M2. D. None of the statements are true.
Which of the following is an example of a company whose stock showed evidence of a price bubble?
A. Facebook B. Google C. Amazon D. All of these responses are correct.