When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy.
B. contractionary monetary and fiscal policies.
C. expansionary monetary and fiscal policies.
D. a contractionary monetary policy and an expansionary fiscal policy.
Answer: B
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If a natural monopoly decreases the quantity of output it produces, then:
A. its profit will increase. B. its average cost will decrease. C. it will have to decrease its price. D. its average cost will increase.
A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that
A) the value of x never changes. B) the value of y does not depend on the value of x. C) the ratio of x to y is constant. D) the slope of the line is not defined because y never changes.
Data from the Bureau of Labor Statistics show that consumer spending on medical care is about equal to consumer spending on housing
a. True b. False Indicate whether the statement is true or false
A country has national saving of $90 billion, government expenditures of $30 billion, domestic investment of $50 billion, and net capital outflow of $40 billion. What is its demand for loanable funds?
a. $40 billion b. $60 billion c. $90 billion d. $130 billion