Which is an example of restrictive fiscal policy?
A) An increase in the discount rate
B) An increase in the federal funds rate
C) An increase in reserve requirements
D) A lowering of tax rates
E) A lowering of government spending
E
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When a shortage of a goods leads to a price increase, its price usually rises because
A) Americans are committed to capitalism. B) most people are better off if it does. C) sellers can benefit by raising their prices. D) higher prices lead to scarce goods being allocated most efficiently.
The shorter the "pass-through" period, the ________ the desirable BOT effects of devaluation on quantities traded will appear
A) sooner B) longer C) bigger D) smaller
If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:
A. increase. B. decrease. C. remain the same. D. be negative.
Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good. b) Private markets would not produce any of the good. c) Private markets produce public goods less efficiently than the government. d) Private markets would charge too high a price for the good.