If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:
a. perfectly elastic.
b. perfectly inelastic.
c. elastic.
d. inelastic.
e. unitary elastic.
e
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The difference between fiscal policy and monetary policy is that
a. fiscal policy is macroeconomic policy and monetary policy is microeconomic policy b. monetary policy is macroeconomic policy and fiscal policy is microeconomic policy c. fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods d. monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing e. fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes
Amajor cause of the Great Recession was:
a. Moral hazard. b.Excessive foreign exchange speculation. c. Contractionary fiscal policies. d. Lack of incentives for homeowners. e. None of the above.
Why does the United States tend to use more capital-intensive methods than many other places?
a. Machinery is relatively expensive in the United States. b. Wages are relatively low in the United States. c. Labor is relatively expensive in the United States. d. Machinery is relatively scarce in the United States.
The Federal Open Market Committee (FOMC) serves as the fiscal agent for the U.S. government.
Answer the following statement true (T) or false (F)