The reason for the different in tax policy and spending policy by the government is due to:
A. the difference in initial spending that results from engaging in tax policy.
B. the fact that when the government engages in spending policy, they do it more aggressively.
C. people not responding to tax policy as much as spending policy.
D. firms drastically responding to tax changes that are implemented.
Answer: A
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If the Fed maintains an expansionary monetary policy, ________
A) the M2 measure of money decreases B) the real interest rate increases C) banks make less loans D) bank deposits increase
Fiscal policies are
A. less effective when the exchange rate is flexible and the economy is open. B. more effective when the exchange rate is flexible and the economy is closed. C. less effective when the exchange rate is fixed and the economy is open. D. less effective when the exchange rate is flexible and the economy is closed.
At the midpoint of a straight-line demand curve, the price elasticity of demand is:
A. greater than one. B. zero. C. less than one. D. equal to one.
As rational consumers, you attempt to maximize utility by allocating your time so that the expected marginal utility of the last unit of time spent in each activity is different
Indicate whether the statement is true or false