"The Federal Reserve should raise interest rates in order to keep inflation at an acceptably low level" is a ________ statement about ________ policy.
A. normative; fiscal
B. positive; monetary
C. normative; monetary
D. positive; fiscal
Answer: C
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Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls. B) Price controls may take the form of price ceilings or price floors. C) Price ceilings below the equilibrium price can cause black markets to develop. D) Rent controls are examples of price floors.
Personal income includes: a. income received in the form of transfer payments. b. wages and salaries
c. interest earnings on bonds. d. all of the above.
When people suddenly want to buy something, supply increases
a. True b. False Indicate whether the statement is true or false
Speculators play a role in the economy similar to that played by
a. farmers. b. investment banks. c. insurance companies. d. stockbrokers.