Which of the following would be considered a supply-side policy?
A. investment tax credits for businesses to encourage investment
B. a decrease in the growth of the money supply
C. an increase in the minimum wage that would cause consumer spending to increase
D. an increase in government spending that would lead to increased aggregate demand
Answer: A
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Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a ________ and under a fixed exchange rate system a decrease in the official value of a currency is called a ________.
A. depreciation; devaluation B. appreciation; revaluation C. depreciation; appreciation D. revaluation; appreciation
What are money market mutual funds?
Ex-London School of Economics student Mick Jagger sang, "You can't always get what you want, but if you try sometime, you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that
a. rational decisions are not always possible. b. you can allocate your resources to what gives you the highest value. c. you can create the supply to meet your own demand. d. you can maximize social welfare by making optimal decisions.
In a deposit-refund system,
a. the refund component compensatesthe consumer for proper waste disposal or recycling activities b. the deposit component should be set equal to the MSC of illegal waste production c. the costs of monitoring and enforcement are higher than if a pollution charge were used d. actual polluters are not penalized for decisions that pose a risk to the environment