In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________
A) increases; rises
B) increases; falls
C) decreases; rises
D) increases; does not change
E) decreases; falls
A
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Legislators facing a close electoral contest will tend to favor
A) policies with benefits greater than costs for everyone. B) policies with benefits greater than costs for the majority. C) policies with benefits in the near future and deferred costs. D) policies representing the public interest.
If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
a. -$300 million. b. -$200 million. c. -$100 million. d. -$50 million.
What is the "doom loop" responsible for the rapid development and severity of the 2009 euro crisis?
What will be an ideal response?
Because employer-provided health insurance was too expensive, a major employer decided to self-insure and simply pay for medical bills itself rather than a premium to an insurance company. As a result
a. they are more likely to institute a wellness program for employees b. they are less likely to institute a wellness program for emp c. they are indifferent with regards wellness programs d. they will regret this decision