Which of the following is a key assumption leading to the Monetarist view that government deficits crowd out private investment?
A) Money demand is sensitive to the interest rate.
B) The aggregate supply curve is horizontal.
C) Technology is fixed.
D) Investment is sensitive to the interest rate.
D
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Smoking increases the risk of lung infections not only for active smokers but also for other people inhaling the smoke passively. Which of the following will help in reducing smoking?
A) A corrective tax B) A life insurance C) A health insurance D) A health tax
All points above the budget line are
A) inferior to every point on the budget line. B) preferred to every point on the budget line. C) unaffordable. D) Both answers B and C are correct.
Explain how fiscal policy can correct a contractionary gap
What will be an ideal response?
Which of the following would cause an upward shift in the consumption function?
A. A stock market crash B. An increase in the price level C. A decrease in disposable income D. A decrease in the price level