Money is created when someone
A. takes out a bank loan.
B. pays back a bank loan.
C. spends money.
D. saves money.
A. takes out a bank loan.
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"Any additional increases in government spending should be for defense," is ________ statement about ________ policy.
A. positive; fiscal B. normative; monetary C. normative; fiscal D. positive; monetary
Consider a market with a price floor. If the price floor is lowered, which of the following would happen?
a. The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would decrease b. The consumer surplus would decrease, the producer surplus would decrease and the dead weight loss would increase c. The consumer surplus, the producer surplus and the dead weight loss would all decrease d. The consumer surplus, the producer surplus and the dead weight loss would all increase e. The consumer surplus would decrease, the producer surplus would increase and the dead weight loss would increase
Assume no price ceiling exists in a market. Then a price ceiling is established below the market equilibrium. What would result?
a. The exchange price b. Equilibrium c. Shortage d. Surplus
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.