Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to fall.
b. Demand for real goods and services to rise and M2 money supply to fall.
c. Demand for real goods and services to remain the same and M2 money multiplier to fall.
d. Demand for real goods and services to rise and monetary base to remain the same.
.D
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Discuss how a politicians "policy differentiation" from his opponent in an election softens the competition over how much in political rents the politician will be able to collect.
What will be an ideal response?
Suppose a farmer raising beef is making a normal profit. Then, because of a scare about mad cow disease, the demand for beef decreases drastically. What happens to the profits of the beef farmer in the short run and in the long run?
What will be an ideal response?
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
Recall the Application about the success of the 2009 stimulus package to answer the following question(s).According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package:
A. were very successful in stimulating consumption spending. B. did very little to stimulate consumption spending. C. were split very evenly between consumption spending and household saving. D. were primarily used to pay off home mortgage balances.