Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income.
B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals.
C) Yes, because government deficits or surpluses affect the total demand for credit.
D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
C
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The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?
A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee
What are the crucial factors that contribute to famine?
What will be an ideal response?
Before 1970, mutual funds invested almost solely in
A) corporate bonds. B) corporate common stocks. C) United States government bonds. D) municipal bonds and money market securities.
Open market operation
What will be an ideal response?