The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
A. interest rate on savings.
B. inflation on investment.
C. interest rate on investment.
D. interest rate on bond prices.
Answer: C
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The urban consumers that the CPI is based on includes:
A. bank tellers. B. greeters at Walmart. C. retired persons. D. All of these are included.
Which of the following statements about bank loans is correct?
a. Banks are allowed to make loans to businesses, individuals, but not make loans to other banks or invest in the stock market. b. Banks are allowed to make loans to businesses, individuals, and other banks, but not invest in the stock market. c. Banks are allowed to make loans to businesses, individuals, and invest in the stock market, but not make loans to other banks. d. Banks are allowed to make loans to businesses, individuals, other banks, and invest in the stock market.
Oil refiners often store some of their spring supply of gasoline because gasoline prices typically ______.
a. decline during the summer b. peak during the summer c. peak during the fall d. decline during the fall
Briefly discuss the benefits and drawbacks associated with using a corrective tax to control pollution.
What will be an ideal response?