The IS curve will shift to the right when which of the following occurs?
A) an increase in the money supply
B) an increase in government spending
C) a reduction in the interest rate
D) all of the above
E) none of the above
B
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All transaction deposits are included in
A) M1 only. B) M2 only. C) both M1 and M2. D) savings balances only.
Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:
a. seasonally unemployed. b. frictionally unemployed. c. structurally unemployed. d. cyclically unemployed.
Liquidity preference refers directly to Keynes' theory concerning
a. the effects of changes in money demand and supply on interest rates. b. the effects of changes in money demand and supply on exchange rates. c. the effects of wealth on expenditures. d. the difference between temporary and permanent changes in income.
Taxes assessed on firms and employees on wages and salaries earned are called
A) dividend taxes. B) payroll taxes. C) corporate profits taxes. D) earned income taxes.