Most policy makers agree that in the long run, changes in the money supply influence:
a. the price level and inflation
b. the real interest rate and aggregate demand.
c. the planned investment expenditure.
d. the exchange rate.
e. the potential GDP and unemployment.
a
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In the late 2000s, the primary source of external funds for corporations was
A) commercial paper. B) loans. C) bonds. D) stocks.
Refer to Scenario 10.8. Suppose that the regulatory agency sets your price where average revenue equals average cost. How much profit will Adriana make?
A) She will lose money and will go out of business. B) She will break even. C) She will make a profit. D) none of the above
Saving is a leakage from the circular flow. Why didn't the classical economists think saving might cause consumption expenditures to fall short of total output?
What will be an ideal response?
Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000 b. low-income people pay $3,000 . high-income people pay $1,000 c. high-income and low-income people all pay $1000 each d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent e. both high-income and low-income people pay 10 percent of their income in taxes