Two goods, X and Y, are called substitutes if
a. an increase in PX causes more Y to be bought.
b. an increase in PX causes less Y to be bought.
c. an increase in PY causes less Y to be bought.
d. an increase in income causes more of both X and Y to be bought.
a
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In the United States, all of the following are deductions generally allowed by the IRS on individual income taxes except
A) mortgage interest. B) charitable contributions. C) contributions to retirement plans. D) rent payments.
Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keynesian theory, which of the following is an appropriate discretionary fiscal policy to use in this situation?
a. A reduction in the money supply. b. Less government regulation. c. Increase federal spending. d. Higher taxes.
The text identified the various sources of risk for bonds. Are U.S. Treasury TIPS bonds free from risk? Explain.
What will be an ideal response?
Predict how monetary policy making would change, if at all, if members of the Board of Governors of the Federal Reserve were popularly elected to two-year terms and could run for re-election.
What will be an ideal response?