Commercial policy is a government policy aimed at influencing:
a. the operation of commercial banks.
b. domestic trade flows.
c. domestic private corporations.
d. international trade flows.
e. the operation of capital markets.
d
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Agricultural price supports are
A) price ceilings. B) price floors. C) quantity quotas. D) taxes.
If no fiscal policy changes are implemented to fight inflation, suppose the aggregate demand curve will exceed the current aggregate demand curve by $900 billion at any level of prices. Assuming the marginal propensity to consume is 0.90, this increase in aggregate demand could be prevented by:
a. increasing government spending by $500 billion. b. increasing government spending by $140 billion. c. decreasing taxes by $40 billion. d. increasing taxes by $100 billion.
The statistical discrepancy account is also referred to as:
a. omissions and errors. b. econometric discrepancy. c. statistical influence. d. human flaws. e. arbitrary human discrepancy.
What are the marginal propensity to consume and level of autonomous consumption spending for a consumption function of the following form: C = 1,200 + 0.5DI?
a. The marginal propensity to consume is 0.5; autonomous consumption spending is $0.50. b. The marginal propensity to consume is 0.5; autonomous consumption spending is $1,200. c. The marginal propensity to consume is 1,200; autonomous consumption spending is $0.50. d. The marginal propensity to consume is 1,200; autonomous consumption spending is $600. e. There is insufficient information to answer this.