Time lags mean that
A. fiscal policy is more effective than monetary policy.
B. economic policy will be ineffective.
C. monetary policy is more effective than fiscal policy.
D. economic policy may be inappropriate when it takes effect.
Answer: D
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Refer to Figure 4-9. What is the size of the unit tax?
A) $8 B) $5 C) $3 D) cannot be determined from the figure
Refer to Table 11-8. What is the minimum efficient scale of production?
A) 100 units B) 200 units C) 300 units D) 400 units
When the central bank increases the monetary base, the purchasing power of previously existing currency ________, and this essentially transfers wealth ________
A) increases; from those who own existing currency to the government B) decreases; from those who own existing currency to the government C) increases; from the government to those who own existing currency D) decreases; from the government to those who own existing currency
A family on a trip budgets $800 for sit-down restaurant meals and fast food. If the price of a fast food meal for the family is $20, how many such meals can the family buy if they do not eat at restaurants?
a. 8 b. 15 c. 20 d. 40 e. 160