Expansionary fiscal policy
A) raises Real GDP more in an open economy than in a closed economy.
B) raises Real GDP more in a closed economy than in an open economy.
C) raises Real GDP equally in an open economy and in a closed economy.
D) does not affect Real GD"P in an open economy.
B
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We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when
A) supply increases and demand decreases B) supply decreases and demand increases. C) supply and demand for a product simultaneously decrease. D) supply and demand for a product simultaneously increase.
One problem associated with the National Banking System was
a. the perverse elasticity of the money supply. b. the tendency of bank reserves to stay in local communities. c. inadequate backing for national bank notes. d. excessive loans made to farmers.
Which of the following is not part of Hernando de Soto's The Other Path?
A. Improving infrastructure. B. Reducing taxes. C. Enforcing laws to safeguard private income. D. Encouraging the "underground" economy.
Which of the following government activities is motivated by a concern about efficiency? Check all that apply.
A. Breaking up Standard Oil (which once owned 90% of all oil refineries) into several smaller companies B. Imposing higher personal income tax rates on people with higher incomes C. Providing some poor people with vouchers that can be used to buy food D. Regulating cable TV prices E. Prohibiting smoking in public places F. Instituting laws against driving while intoxicated