Supply-side policy to reduce inflation would focus on
A. Decreasing the interest rates to encourage investment.
B. Increasing the incentives to produce goods and services.
C. Decreasing the money supply.
D. Raising marginal tax rates to reduce aggregate demand.
Answer: B
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M1 includes all the following items EXCEPT ________
A) checking deposits owned by individuals and businesses B) traveler's checks C) deposits in money market mutual funds D) currency owned by individuals and businesses
Why does an external cost lead to inefficient overproduction?
What will be an ideal response?
Refer to Table 9-4. Use the table above to select the statement that accurately interprets the data in the table
A) Bill has an absolute advantage in picking berries and catching fish. B) Rob has an absolute advantage in picking berries and catching fish. C) Bill has an absolute advantage in picking berries and Rob has an absolute advantage in catching fish. D) Rob has an absolute advantage in picking berries and Bill has an absolute advantage in catching fish.
Which of the policies of the U.S. Federal Reserve would most closely match the monetary policy most often used by the ECB?
A) open-market operations B) discount policy C) margin requirements D) reserve requirements changes