If aggregate demand shifts because of a wave of pessimism about stock prices, those who favor a policy that "leans against the wind" would advocate the
a. Federal Reserve increase the money supply or the government increase taxes.
b. Federal Reserve increase the money supply or the government decrease taxes.
c. Federal Reserve decrease the money supply or the government increase taxes.
d. Federal Reserve decrease the money supply or the government decrease taxes.
b
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When Exxon Mobil reports record profits of more than $10 billion per quarter, we know
A) other oil companies must be struggling. B) consumers must be paying high prices at the pump. C) consumers must have lost $10 billion in surplus. D) all of the above. E) none of the above follow from the information given.
Eli is headed to his job harvesting grapes at a local vineyard. He earns $8 every hour he works there. His friend calls him and asks him to go mountain biking for the next 2 hours instead. Eli cannot decide between the two activities. His indecision implies he values riding his mountain bike for two hours:
A. less than $16. B. more than $16. C. at no more than $8. D. at exactly $16.
A biennial budget: a. is more useful than an annual budget as a tool of discretionary fiscal policy
b. is implemented by the federal government, while an annual budget is implemented by state governments. c. would ensure that cabinet members spend more time on administering an approved budget and defending a proposed budget. d. would encourage cabinet members to focus more on running their agencies rather than being involved in budget deliberations. e. would require shorter-term economic forecasts than an annual budget.
If the banking system has a required reserve ratio of 10 percent, the money multiplier is
A. 0.9. B. 1.11. C. 0.1. D. 10.0.