The variables that determine a household's budget line are
A) its preferences and income.
B) its preferences and prices.
C) prices and income.
D) None of the above are correct.
C
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Compare and contrast horizontal and vertical equity
What will be an ideal response?
Core inflation:
A. measures the changes in prices for the entire market basket of the average urban consumer. B. is inflation measured using the producer price index. C. measures price changes for the market basket of the average urban consumer with food and energy costs taken out. D. is inflation measured using the retail price index.
Which of the following are represented by the same flow in the circular flow model?
A) the flow of goods and the flow of factors of production B) the flow of costs and the flow of revenue C) the flow of income earned from the sale of resources and the flow of expenditures on goods and services D) the flow of income received by households and the flow of tax revenues paid by firms
The most commonly used tool in monetary policy is
A) changes in the discount rate. B) express lending transactions. C) open market operations. D) changes in required reserve ratios.