The use of spending and taxes by the government to influence aggregate demand is known as
a. monetary policy.
b. governmental policy.
c. administrative policy.
d. fiscal policy.
e. federal policy.
d
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The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on euros against dollars
A) plus; premium B) minus; premium C) plus; discount D) minus; discount E) times; premium
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of aggregate surplus?
A. $247,250 B. $272,250 C. $242,000 D. $217,000
When firms enter a market, the supply increases and price:
A. falls and profits increase. B. increases and profits decrease. C. falls and profits decrease. D. increases and profits increase.
The main criticism Joseph Stiglitz levels at the IMF is that
A. it provides too many loans that are not repaid. B. it no longer promotes economic growth, but rather contraction. C. it does not provide enough loans. D. it does not sufficiently promote the market system.