Why might the Federal Reserve take an action that reverses expansionary fiscal policy?
A. In order to fight the unemployment caused by the expansionary fiscal policy
B. In order to fight the deflation caused by the expansionary fiscal policy
C. In order to fight the inflation caused by the expansionary fiscal policy
D. To demonstrate its independence from the government
Ans: C. In order to fight the inflation caused by the expansionary fiscal policy
You might also like to view...
For price discrimination to exist, all of the following are necessary EXCEPT
A) a downward sloping demand curve. B) an identifiable group of buyers with different elasticities of demand. C) an upward sloping marginal cost curve. D) there can be no resale of the product.
Rent controls a. are an example of price floors
b. are an example of price ceilings. c. destroy wealth by preventing the movement of apartments to higher-valued use. d. Both b and c
When investors use borrowed funds to pay for investments, it's called:
A. leveraging. B. tulip mania. C. hedging. D. herding.
Refer to the given data. If the market wage rate is $8 and the firm hires its profit-maximizing number of workers, the firm's total wage bill (payment) will be:
A. $16.
B. $24.
C. $32.
D. $48.