Answer the following statements true (T) or false (F)
1) Expansionary fiscal policy is so named because it involves an expansion of the nation's money
supply.
2) If the MPC in the economy is .75, government could shift the aggregate demand curve
rightward by $30 billion by cutting taxes by $10 billion.
3) If the MPC in the economy is .75, government could shift the aggregate demand curve
rightward by $30 billion by cutting taxes by $10 billion.
4) Demand-pull inflation can be restrained by increasing government spending and reducing
taxes.
1) F
2) T
3) T
4) F
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A cash withdrawal from the banking system
A) decreases deposits. B) decreases reserves. C) decreases excess reserves. D) All of the above are correct.
One method used to control the ability of firms to capture monopoly profit in the United States is through
a. government purchase of products produced by monopolists. b. government distribution of a monopolist's excess production. c. enforcement of antitrust laws. d. regulation of firms in highly competitive markets.
In monopolistically competitive industries, firms find it easy to enter and exit the market in the long run.
Answer the following statement true (T) or false (F)
Monopolist marginal revenue rises with output.
Answer the following statement true (T) or false (F)