An example of stimulus spending by the government might be:

A. increase in government purchases of new cars.
B. the monthly payments a government agency makes to its employees.
C. a cut in the government budget aimed at spurring private consumption.
D. the FED engaging in open market sales of securities.


A. increase in government purchases of new cars.

Economics

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What will be an ideal response?

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Suppose an individual's MRS (of steak for beer) is 2:1 . That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is $4 . Then in order to increase utility the individual should:

a. buy more steak and less beer. b. buy more beer and less steak. c. continue with current consumption plans.

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Mutual interdependence applies to actions of:

a. monopolistic competitors. b. oligopolists. c. perfect competitors. d. monopolists. e. firms operating in different industries.

Economics

The U.S. dollar is backed by gold

a. True b. False Indicate whether the statement is true or false

Economics