Fiscal policy involves which of the following?
A) interest rates B) tax policy
C) buying and selling government-agency bonds D) none of the above
B
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If the quantity of money demanded is less than the quantity of money supplied, then the
A) interest rate will decrease. B) interest rate stays the same. C) interest rate will increase. D) effect on the interest rate is indeterminate.
Schumpeter’s theory that business cycles are caused by breakthroughs in the form of new products, new machines, or new production techniques is known as the
a. real business cycle theory. b. innovation theory. c. over investment theory. d. technology theory.
"Wal-Mart is a low-wage firm and this indicates that it exploits its workers." Which of the following should cause one to question the validity of this statement?
A) This is a trick question. Wal-Mart does exploit its workers and the below average wage of Wal-Mart employees illustrates this point. B) the large sales revenue of Wal-Mart C) No one is required to work for Wal-Mart and, therefore, it must attract workers by paying them more attractive wages than they could earn elsewhere. D) the high profits of Wal-Mart
Advertising is likely to
A. shift the firm's average total cost curve upward and make demand more elastic. B. shift the firm's average total cost curve downward and make demand more elastic. C. shift the firm's average total cost curve upward and make demand more inelastic. D. shift the firm's average total cost curve downward and make demand more inelastic.