The idea that expected future increases in output cause increases in the current money supply and that expected future decreases in output cause decreases in the current money supply, rather than the other way around, is known as
A. nominal adjustment.
B. Granger causality.
C. reverse causation.
D. money neutrality.
Answer: C
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The crowding-out effect of expansionary fiscal policy suggests that:
A. tax increases are paid primarily out of saving and therefore are not an effective fiscal device. B. increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment. C. it is very difficult to have excessive aggregate spending in the U.S. economy. D. consumer and investment spending always vary inversely.
If demand is elastic, a rise in price will decrease total expenditure.
Answer the following statement true (T) or false (F)
Usury is considered the charging of
A. higher interest rates than people are willing to pay. B. lower interest rates than people are willing to pay. C. unconscionably high interest rates. D. extremely low rates of interest.
The firm's demand for labor curve is its
A. average product of labor curve. B. marginal product of labor curve. C. average revenue product of labor curve. D. marginal revenue product of labor curve.