In cases of extreme annual inflation, the breakdown of the monetary system forces people to waste valuable time engaging in bartering
a. True
b. False
A
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Discretionary fiscal policy entails
A. automatic changes in spending or taxes that occur as economic conditions change. B. changing government spending or tax policy to offset automatic stabilizers. C. legislative changes in spending or tax policies. D. actions exercised by the President alone in the United States.
Use the following graph, which shows the supply and demand for British pounds, to answer the next question.
D1 and S1 represent the initial demand and supply curves. If there is a large increase in the number of American tourists visiting Britain because of a major event (like the Olympics or the World Cup), what should the British government do if it wants to fix the exchange rate at its initial level?
A. Shift D1 to D3 B. Shift S1 to S2 C. Shift S1 to S3 D. Shift D1 to D2
Legal or governmental restrictions that give monopolistic advantages to a firm include all of the following EXCEPT
A) economies of scale. B) tariffs. C) licenses. D) franchises.
"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of living than people in Country B." Is this statement true or false and explain your answer
What will be an ideal response?