George spent $20,000 to buy bonds issued by a public sector enterprise. According to a stockbroker, the amount spent by George is:
a. saving
b. an investment.
c. a tax to the government.
d. a consumption expenditure.
b
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The Redwood City Council has decided that there is an overallocation of resources in the lawn-care industry. Almost every homeowner owns a lawnmower, hose and sprinkler, seeder, spreader, etc., and these items are used, at most, once a week. The council
will establish a legal monopoly and select a private firm that will be responsible for all lawn care in the city. What types of rent-seeking activities can be expected as a result of this action?
Approximately how often does the Federal Open Market Committee meet?
For a Giffin good, the income effect is
A. less than the substitution effect. B. the same as the substitution effect. C. greater than the substitution effect. D. in the same direction of the substitution effect.
The Phillips curve suggests that monetary policymakers could use monetary policy to
A. reduce the unemployment rate without affecting the inflation rate. B. reduce inflation without affecting the unemployment rate. C. reduce the unemployment rate at the expense of higher inflation. D. reduce the unemployment rate while reducing inflation.