Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) expansionary monetary policy
C) contractionary monetary policy D) contractionary fiscal policy
C
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A $1 increase in high-powered money raises the quantity of deposits until
A) all of that increase in high-powered money is held as required reserves. B) required reserves fall back down to zero. C) required reserves rise back up to zero. D) deposits rise by $1. E) GDP rises by $1 times the income-determination multiplier.
"Laboratories of democracy" refers to the fact that having many governments at different levels _____
a. allows for experimentation b. allows for replication of successful policies c. allows for the optimal provision of scientific knowledge d. a and b
All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable
a. True b. False Indicate whether the statement is true or false
Assume that for Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that for the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal:
A. Canada should export televisions and import wheat. B. Canada should export wheat and import televisions. C. the United States should export wheat and import televisions. D. the United States should export televisions and import wheat.