What links the decisions of consumers and firms in a market?
A) the government
B) prices
C) coordination officials
D) microeconomics
B
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John makes it a point to save a portion of his salary every month. Assuming all else equal, if the real interest rate increases, it is likely to cause:
A) a downward movement along John's credit supply curve. B) John's credit supply curve to shift to the left. C) John's credit supply curve to shift to the right. D) an upward movement along John's credit supply curve.
We all behave as speculators in our economic transactions
A) because everyone likes to gamble. B) because we all act in the hope of benefits from a correct anticipation of future events. C) unless we never buy on credit. D) unless we use the services of middlemen.
Redistribution programs create a disincentive to work among
A) taxpayers only. B) benefit recipients only. C) both taxpayers and benefit recipients. D) neither taxpayers nor benefit recipients.
Which of the following is not a valid criticism of discretionary fiscal policy? a. The implementation of fiscal policy is sometimes difficult
b. Time lags in fiscal policy are long. c. Fiscal policy works only during periods of stagflation. d. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income. e. Fiscal policy might have undesirable long-term effects on aggregate supply.