Contractionary monetary policy is when ________.
A. exchange rates are increased
B. the money supply is decreased
C. taxes are increased
D. government spending is decreased
Answer: B
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Normally, the Federal Deposit Insurance Corporation would shut down a bank when:
A) assets of the bank equal the liabilities of the bank. B) assets of the bank exceed the liabilities of the bank. C) liabilities of the bank exceed the assets of the bank. D) stockholders' equity is greater than zero.
If the single restaurant in an Eastern Kentucky town is currently charging a price for its ham and eggs where the demand is unit elastic, its marginal revenue for ham and eggs is
A) negative. B) positive. C) zero. D) maximized. E) undefined.
A tax increase
A) decreases aggregate demand and the AD curve shifts leftward. B) increases aggregate demand and the AD curve shifts rightward. C) decreases the quantity of real GDP demanded and there is a movement up along the AD curve. D) increases the quantity of real GDP demanded and there is a movement down along the AD curve. E) does not shift or lead to a movement along the aggregate demand curve.
Refer to Figure 15-16. If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________
A) Q3 units; P4 B) Q1 units; P1 C) Q1 units; P4 D) Q5 units; P3