Fiscal policy involves discretionary changes in
A) interest rates.
B) exchange rates.
C) income tax rates.
D) the rate of growth of the quantity of money in circulation.
C
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Which of the following is true of an intermediate good? a. It is of no value to the seller
b. It is of no value to the buyer. c. It is purchased for household production. d. It helps produce another good. e. It is sold at a discounted price by firms.
Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate
The profit maximizing price for the monopolist will be
A. $5.00. B. $2.90. C. $3.35. D. $4.50.
The pure rate of interest is approximated by the:
A. rate that savings and loan associations charge on mortgage loans. B. rate charged consumers by credit card companies. C. rate paid on long-term government bonds. D. announced rate at which commercial banks make business loans.