When a direct expenditure offset occurs with the implementation of an expansionary fiscal policy,
A. the stimulative effect will be more than expected.
B. the fiscal policy will not be discretionary.
C. the time lags associated with the implementation of fiscal policy will shorten.
D. the stimulative effect will be less than expected.
Answer: D
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The set of income-quantity pairs showing the amount of a good the consumer buys at various levels of income is called
a. a compensated demand curve. b. a budget line. c. an income-elasticity curve. d. an Engel curve.
The costs of inflation to households and firms due to holding less money and making more frequent trips to the bank are known as
A) seigniorage. B) menu costs. C) velocity costs. D) shoe-leather costs.
Which of the following statement(s) most likely describes the outcome of a change in price?
a. A change in the price of a good never causes the demand curve for that good to shift. b. A change in the price of a good never causes the demand or supply curve for that good to shift. c. A change in the price of a good never causes the supply curve for that good to shift. d. A change in the price of a good causes the demand and supply curves for that good to shift.
Which of the following functions of money is also a common function of most other financial assets?
a. a unit of account b. a store of value c. medium of exchange d. None of the above is correct.