Which of the following pairs of policies have inconsistent effects on aggregate demand?
a. A tax increase and an increase in the money supply
b. A transfer payment increase and an increase in the money supply.
c. A reduction in government purchases and a reduction of the money supply.
d. none of the above
a
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By 1830 home manufacture had declined significantly due to:
a. increased industrial organization. b. increased tariffs. c. advances in transportation. d. Both a and b are correct. e. Both a and c are correct.
If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely
a. increase the money supply. b. decrease the money supply. c. more stringently enforce already existing banking regulations. d. propose new banking regulations. e. become more lax when it enforces already existing banking regulations.
According to the Ricardian equivalence theorem, people increase savings today when the government increases deficits because they recognize that:
A. consumption increases future taxes. B. government deficits imply higher future taxes. C. government deficits imply lower future taxes. D. consumption reduces future taxes.
A monopolist maximizes profits by setting the quantity where:
A. marginal revenue is equal to marginal cost. B. marginal revenue is greater than marginal cost. C. marginal revenue is less than marginal cost. D. total revenue is as high as possible.