If the U.S. government increased its deficit, then
a. U.S. bonds would pay higher interest but a dollar would purchase fewer foreign goods.
b. U.S. bonds would pay higher interest and a dollar would purchase more foreign goods.
c. U.S. bonds would pay lower interest and a dollar would purchase fewer foreign goods.
d. U.S. bonds would pay lower interest but a dollar would purchase more foreign goods.
b
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Which of the following assets are counted in M2?
A) gold B) balances in retail mutual funds accounts C) value of outstanding bonds D) lines of credit offered by commercial banks
A competitive firm sells 100 units of output for $5 per unit. The firm's marginal revenue amounts to __________
Fill in the blank(s) with correct word
Easy money policy is _____.
(A) Monetary policy that increases the money supply. (B) Monetary policy that reduces the money supply. (C) The belief that the money supply is the most important factor in macroeconomic performance. (D) The time it takes for monetary policy to have an effect.
Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated. B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost. C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction. D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.