If the Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):
A. expansionary fiscal policy.
B. nondiscretionary fiscal policy.
C. contractionary fiscal policy.
D. political business cycle.
Answer: C
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A market in which national currencies are traded by households, firms and governments, is referred to as a(n)
A) foreign exchange market. B) fed funds market. C) international reserves market. D) gold certificate market.
If autonomous consumption decreases, which of the following would occur in the short run?
a. a decrease in GDP, a decrease in the price level, a decrease in money demand and a decrease in the interest rate. b. an increase in GDP, an increase in the price level, an increase in money demand and an increase in the interest rate. c. a decrease in GDP, an increase in the price level, an increase in money demand and an increase in the interest rate. d. an increase in GDP, a decrease in the price level, a decrease in money demand and an increase in the interest rate. e. a decrease in GDP, a decrease in the price level, an increase in money demand and an increase in the interest rate.
It is easier to sustain tacit collusion in an infinitely repeated game if:
A. the interest rate is lower. B. the present value of cheating is higher and the interest rate is lower. C. the present value of cheating is higher. D. there are more players in the game.
In a command system:
A. Self-interest motivates and commands each business firm's decisions and actions B. The head of each family decides what to do with the family's resources C. The government makes production and allocation decisions D. Market traders command what outputs are produced and how they are allocated