One result of a contractionary monetary policy would be
A. an increase in business investment.
B. an increase in the money supply.
C. a decline in the price level.
D. lower interest rates.
Answer: C
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Since price tends to equal marginal utility, the price of water is low and the price of diamonds is high.
Answer the following statement true (T) or false (F)
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above
A decrease in quantity demanded is given by a(n):
a. downward shift of the demand curve.
b. upward shift of the demand curve.
c. downward movement to the right along the demand curve.
d. upward movement to the left along the demand curve.
e. downward shift of both demand and supply curves.
______ involves the manipulation of tax and spending decisions to accomplish governmental goals.
A. Economic policy B. Education policy C. Fiscal policy D. Environmental policy