Raising taxes and cutting spending are examples of ________
A) fiscal policy tightening
B) fiscal policy expansion
C) monetary policy tightening
D) monetary policy expansion
E) none of the above
A
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When do new firms enter a perfectly competitive market? When does entry stop?
What will be an ideal response?
One way of overcoming the problem of the commons is to make it private property
Indicate whether the statement is true or false
A Big Mac costs $4.79 in the United States and 9.6 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, purchasing power parity predicts that
A) the dollar will appreciate as the demand for dollars rises in the long run. B) the dollar will depreciate as the demand for dollars falls in the long run. C) the dollar will appreciate as the supply of dollars falls in the long run. D) the dollar will depreciate as the supply of dollars rises in the long run.
Allocative inefficiency due to unregulated monopoly is characterized by the condition:
A. P = MR. B. P > MC. C. P > AVC. D. P = MC.