An increase in government spending causes the:
a. Monetary base to fall.
b. Monetary base to either rise or fall, depending on the state of the economy.
c. No change in the monetary base.
d. Monetary base to rise.
.C
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Henry David Thoreau faced a choice: Stay in the village of Concord or move out to Walden Pond. He decided to move to Walden. What was his" opportunity cost"?
A) There was no opportunity cost if he didn't pay rent for his cabin on Walden Pond. B) The satisfaction he would have enjoyed were he to stay in Concord C) The sweat and toil of building his own cabin and living off the land at Walden Pond D) There was no opportunity cost, because he made a free and voluntary decision to live the way he preferred to live.
When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs
A) a marginal benefit to society greater than the marginal cost of producing it B) a marginal benefit to society equal to the marginal cost of producing it C) a marginal benefit to society less than the marginal cost of producing it D) a marginal benefit to society equal to zero
Lump sum taxes _____
a. are difficult to model theoretically but easy to apply b. have a small excess burden c. have no welfare cost d. require perfectly elastic demand curves
The word "economy" comes from the Greek word oikonomos, which means
a. "environment.". b. "production.". c. "one who manages a household.". d. "one who makes decisions.".