Which of the following measures did President Bush adopt in 2001 to get the economy moving again?
a. A hike in the wages of workers
b. A ten-year tax cut
c. An increase in taxes on high-income households
d. Liquidation of money supply
e. A decrease in government spending
b
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If the price of one good changes, what happens to the relative price and the slope of the household's budget line?
What will be an ideal response?
If money demand does not depend upon income, then
a. monetary policy cannot have any effect upon the economy. b. monetary policy will only affect the level of the price level. c. monetary policy will only affect interest rates. d. monetary policy will have a larger impact on income.
Financial disintermediation occurs when:
a. Individuals no longer trade securities in the secondary market. b. Individuals withdraw funds from financial intermediaries and invest them elsewhere. c. Businesses no longer borrow directly in the bond market. d. All of the above.
Which of the following is not a Central Bank:
(a) The European Central Bank. (b) Bank of England. (c) Bank of America. (d) Federal Reserve.