An unexpected decrease in nonlabor income will have ________ effect on a household's consumption.
A. a positive
B. a negative
C. no
D. an uncertain
Answer: B
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The goal of a commercial bank is to
A) establish good regulations for commercial activities. B) accept only deposits made in money. C) minimize its taxes paid to state governments. D) maximize its stockholders' wealth. E) make only safe, no-risk loans.
Policy is conducted via discretion if policymakers
a. announce and achieve a constant money supply. b. announce and achieve a constant interest rate. c. are free to respond to changes in economic conditions on a case-by-case basis. d. announce in advance how they will respond to changes in economic conditions.
According to the aggregate supply-aggregate demand model, an expansionary fiscal policy will, in the long run,
a. have the opposite effect of an expansionary monetary policy b. increase both real GDP and the price level c. increase real GDP and decrease the price level d. increase real GDP and leave the price level unchanged e. increase the price level and leave real GDP unchanged
Differences in scientific judgment between economists are similar to all of the following except
a. astronomers debating whether the sun or earth was at the center of the solar system. b. meteorologists debating the existence of global warming. c. two politicians arguing about the fairness of the tax code. d. explorers debating whether or not the earth was flat before the time of Christopher Columbus.