According to Ricardian equivalence, a long-run impact on the economy occurs when the government ________
A) lowers taxes
B) issues more government bonds
C) increases spending on capital goods
D) raises taxes
C
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To decrease the money supply the Fed can:
A. Reduce the reserve requirement, raise the discount rate, or sell bonds. B. Raise the reserve requirement, raise the discount rate, or sell bonds. C. Raise the reserve requirement, reduce the discount rate, or buy bonds. D. Raise the reserve requirement, raise the discount rate, or buy bonds.
Explain why the law of one price may best be applied to financial assets.
What will be an ideal response?
Resources are also referred to as outputs.
Answer the following statement true (T) or false (F)
In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is
a. $480 b. 480 cookies c. 32 cookies d. 1/32 of a cookie e. 15 cookies