The tools of demand-side macroeconomic policy are the money supply and prices.
Answer the following statement true (T) or false (F)
False
Monetary policy is a demand-side tool, but prices are not.
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Households in the former Yugoslavia were required to declare the number of radios and television sets they owned, and to pay a monthly tax on each. From the perspective of the free-rider problem, the radio and TV taxes attempted to
A) generate negative externalities on Yugoslav households. B) generate positive externalities on Yugoslav households. C) coerce households into paying for the radio and television broadcasts. D) coerce households into listening less to radio and watching less television.
By fixing its exchange rate, China is most likely
A) achieving a low inflation rate by anchoring to the U.S. inflation rate. B) keeping its export prices low. C) making it easier to compete in world markets. D) Both B and C.
If the implied exchange rate between Big Mac prices in the United States and the Philippines is 68 pesos per dollar, but the actual exchange rate between the United States and the Philippines is 43 pesos per dollar, which of the following would you
expect to see? A) a depreciation of the dollar B) an increase in the demand for dollars C) an appreciation of the Philippine pesos D) a decrease in the demand for dollars
The law of demand includes the statement "other things being equal." These other things include all of the following EXCEPT
A. incomes. B. the price of the good itself. C. tastes. D. the price of related goods.