Fiscal policy is impotent when the LM curve is
A) vertical.
B) horizontal.
C) downward-sloping.
D) horizontal or downward-sloping.
A
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Which expression below matches most closely the way economists go about testing their models?
A) "Consistency is the hobgoblin of small minds." B) "Seeing the results is the only way to know if you are right." C) "A bird in the hand is worth two in the bush." D) "In the long run we are all dead."
Which of the following government programs provides recipients with unrestricted cash payments?
a. The food stamp program b. Medicaid c. Temporary Assistance to Needy Families (TANF) d. Housing assistance programs
Which of the following is not a basic characteristic of monopolistic competition?
A. The use of trademarks and brand names. B. Recognized mutual interdependence. C. Product differentiation. D. A relatively large number of sellers.
Firms in the long run do not experience diminishing marginal returns. Then why do some industries have upward-sloping long-run supply curves?
What will be an ideal response?