An example of fiscal policy occurs when the government makes Social Security payments.
Answer the following statement true (T) or false (F)
True
Fiscal policy is the use of government taxes and spending, including transfer payments such as Social Security, to alter macroeconomic outcomes.
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If the Japanese government enters the foreign exchange market and sells yen to maintain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate C) appreciate; depreciate D) appreciate; appreciate
For which of the following goods is demand most sensitive to interest rate changes?
a. Refrigerators b. Shoes c. Corn d. Textbooks e. Motor oil
The consumption function is a function showing the relationship between consumption and
A) disposable income. B) exports. C) interest rates. D) investment.
Enforcing property rights in an economy will
A) decrease the level of foreign portfolio investment. B) raise the level of investment. C) cause the market system to work less efficiently. D) encourage corruption and expand the underground economy.