A key distinction between microeconomics and macroeconomics is the use of monetary policy. Monetary policy is conducted by:
a. local banks.
b. a nation’s central bank.
c. a nation’s legislative body.
d. a state’s legislative body.
b. a nation’s central bank.
Monetary policy is conducted by a nation’s central bank.
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Which of the following conditions would prevent price discrimination?
a. the ability to identify customers who are willing to pay more b. the ability to prevent low-price customers from reselling to high-price customers c. perfect competition d. a monopoly market structure e. profit maximization
If the government budget is balanced, and saving is greater than investment, then the
A. current account must be in surplus. B. current account must be in deficit. C. current account balance must be zero. D. capital account must be in surplus.
During the last two decades, most of the surplus generated by the Social Security system was
a. used to finance current government expenditures. b. invested in government bonds that will make it possible for the federal government to pay future retirement benefits without an increase in federal taxes. c. used to pay down the national debt. d. invested in bonds offered by foreign governments and businesses that will provide a stream of future income for the finance of retirement benefits.
In Figure 33.4, what is the burden of the tax on employers?
A. The wage increase of W5 - W2. B. The wage increase of W5 - W3. C. The wage increase of W5 - W1. D. The wage increase of W3 - W2.