Which of the following would be considered a fiscal policy action?
A) Spending on the war in Afghanistan is increased to promote homeland security.
B) Tax incentives are offered to encourage the purchase of fuel efficient cars.
C) A tax cut is designed to stimulate spending during a recession.
D) The Fed increases the money supply.
C
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In the above figure, when the price of Good B increases, the result can be shown by
A) the movement from D1 to D2 in Graph A. B) the movement from D2 to D1 in Graph A. C) the movement along D0 from P1 to P2. D) the movement along D0 from P2 to P1.
Most of the loanable funds available to the World Bank to lend to developing nations come from
A) the sale of oil. B) developing nations. C) the world's wealthiest nations. D) the sale of international bonds that are issued by the World Bank.
Annual changes in the level of investment in the U.S. during the last 40 years have been
a. highly volatile b. positive, moderate, and steady c. positive, dramatic, and steady d. close to zero, but the level has been high e. slightly negative, that is, falling steadily, but still high relative to the levels of the four decades before the 1960s.
In which of the following ways is a monopolist different from a perfect competitor?
a. Average cost will continually drop as output expands. b. Price is above marginal revenue. c. Average total cost equals average fixed costs plus average variable costs. d. The demand curve for the industry has a negative slope.