In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period, the growth rate of the ________ decreased before ________ decreased
A) money supply; interest rates
B) money supply; output
C) budget deficit; interest rates
D) budget deficit; output
B
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Suppose a government wants to reduce its budget deficit. It could ________.
A. encourage home production B. decrease taxes C. reduce the number of activities that are considered illegal D. increase government spending
In an unregulated, competitive market, less than the efficient quantity of education is produced and consumed because
A) the decisions to produce and consume education are based on marginal private costs and marginal private benefits. B) the decisions to produce and consume education are based on marginal social costs and marginal social benefits. C) the decisions to produce and consume education are based on marginal private benefits and marginal social costs. D) marginal private costs are consistently greater than marginal private benefits.
How does a change in the quantity of money change the interest rate in the long run?
What will be an ideal response?
Earmarked taxes _____
a. are taxes whose revenues are dedicated to a particular program b. are taxes whose revenue is given to a specific group c. are income taxes that minimize the decline in labor supply d. are taxes that go into the general fund