Relative to fiscal policy, monetary policy
a. has fewer harmful side effects.
b. requires much more time to implement.
c. is more closely controlled by Congress.
d. is much more independent of the political process.
D
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The circular flow model is not used anymore because it fails to perfectly replicate real world situations
a. True b. False Indicate whether the statement is true or false
You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic profit if the return on your investment is
A. between 0 and 5%. B. 5%. C. greater than 5%. D. only greater than 10%.
The Great Recession of 2007-09 and the consequent policy response made the:
A. Actual budget deficit become very close to the cyclically-adjusted deficit during that period B. Actual budget deficit shrink during that period C. Cyclically-adjusted deficit grow during that period D. Cyclically-adjusted budget balance turn positive during that period
"The U.S. government should not use my tax dollars to subsidize people on welfare"
A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.