During a period of contractionary monetary policy
A. the price level is decreased, which leads to a decrease in the money supply.
B. the price level is increased, which leads to an increase in the money supply.
C. the rate of growth of the money supply is increased, leading to an increase in the price level.
D. the rate of growth of the money supply is reduced, leading to a decrease in the price level.
Answer: D
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Having the government regulate workplace safety would most likely improve economic efficiency if
A. workers value safe work environments. B. workers are unable to correctly judge the risk associated with a particular job. C. firms are unable to attract workers to safe jobs. D. firms and workers differ on the value they place on safe versus risky jobs. E. the cost of introducing safety equipment is high.
Which of the following statements can correctly be made about social regulation?I.Extensive social regulation may have an anticompetitive effect.II.The benefits of social regulation are easier to measure than are the costs of social regulation.
A. I only B. II only C. both I and II D. neither I nor II
Suppose the quantity of x is measured on the horizontal axis. If the price consumption curve is vertical when the price of x changes, then the demand for x is
A) perfectly elastic. B) perfectly inelastic. C) unit elastic. D) There is not enough information to determine the price elasticity of demand for x.
TARP, created in 2008, stands for:
A. Toxic Asset Relief Program B. Troubled Asset Recovery Plan C. Toxic Asset Reinvestment Policy D. Troubled Asset Relief Program