Which of the following is not a component of the federal government's fiscal policy?
A. Debt financing
B. Key interest rates
C. Spending
D. Taxation
Answer: B. Key interest rates
Explanation: Spending, taxation, and debt financing are all part of the government's fiscal policy,but the Fed's efforts to influence the economy by raising and lowering key interest rates are part of the government's monetary policy.
You might also like to view...
The Federal Reserve System performs many functions but its most important one is
A. providing for check clearing and collection. B. acting as fiscal agent for the U.S. government. C. issuing currency. D. controlling the money supply.
Refer to the above figure. If box A represents businesses and box B represents the resource market in this circular flow model, then the real flow of goods, services, and economic resources would be represented by flows:
A. (5), (6), (7), and (8). B. (7), (5), (4), and (2). C. (1), (2), (3), and (4). D. (1), (3), (6), and (8).
The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
With an export subsidy of $20 per bushel, the cost to the government of paying the export subsidy is
A. $600 million. B. $2.2 billion. C. $3 billion. D. $1.2 billion.
An increase in the price of labor (a variable resource) shifts
A) all cost curves upward.
B) the variable cost curves upward but leaves the fixed cost curves unchanged.
C) the fixed cost curves upward but leaves the variable cost curves unchanged.
D) the marginal cost curve rightward.
E) none of the cost curves.