Which of the following is a microeconomic question?
A. Should the government decrease unemployment benefits to reduce the unemployment rate?
B. Why do some countries have higher inflation rates than other countries?
C. Should the government subsidize corn farmers to encourage the production of ethanol?
D. Should congress decrease taxes to help stimulate the economy?
Answer: C
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If recessions are in large part the consequence of coordination failures,
A) government must direct or control private spending to reduce instability. B) stability cannot be achieved without the use of discretionary fiscal policy. C) stability cannot be achieved without the use of discretionary monetary policy. D) the economy is unlikely to respond smoothly and predictably to shifts in government policy.
Which of the following is not a reason for low savings in poor households:
a. low income b. unstable income c. irrational spending patterns d. unfamiliarity with in financial institutions e. all are good reasons for low savings
The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart
A) an inflationary bias to monetary policy. B) a deflationary bias to monetary policy. C) a disinflationary bias to monetary policy. D) a countercyclical bias to monetary policy.
All of the following will shift the AD curve to the right except a(n):
a. increase in consumer confidence. b. decrease in taxes. c. increase in government spending. d. increase in the MPC. e. increase in transfer payments.