Which of the following is a series of events that accurately describes the steps by which restrictive monetary policy is effective?
A. Increase in M1, decrease in investment, and decrease in interest rate.
B. Decrease in interest rate, decrease in M1, and increase in investment.
C. Decrease in M1, increase in interest rate, and decrease in investment.
D. Increase in M1, increase in interest rate, and increase in investment.
Answer: C
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Sadie is getting ready to go to work where she earns $70 a day as a day laborer. Her friend Caroline calls her and asks her to go swimming with sharks for the day. Sadie decides to go with her. Sadie's choice implies that her opportunity cost of working is:
A. less than $70. B. greater than $70. C. equal to $70. D. Cannot say without more information.
Which of the following will be most likely to contribute to the growth of a less-developed country?
a. price controls that keep the cost of agricultural products low b. rapid population growth c. exchange rate controls and export restrictions d. secure property rights and low marginal tax rates
Interest is the payment for the use of funds used to produce capital.
Answer the following statement true (T) or false (F)
The military draft can be seen as an implicit tax on potential recruits and a subsidy to those who demand defense services.
Answer the following statement true (T) or false (F)