Increased government spending is an example of:
A. expansionary monetary policy.
B. contractionary monetary policy.
C. contractionary fiscal policy.
D. expansionary fiscal policy.
Answer: D
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Consider the accompanying payoff matrix.
If Column Cruises offers reduced rates, and Row Resorts keeps its rates high, then Row Resorts will earn ________, and Column Cruises will earn ________.
A. 300; 300 B. 500; 10 C. 50; 50 D. 10; 500
The Federal Reserve Board of Governors
A. will lower the discount rate to restrict monetary growth. B. are appointed by the president for seven-year terms. C. is basically independent. D. serve at the pleasure of the president, who can force their resignations at any time.
If a good that generates negative externalities were priced to take these negative externalities into account, its
A. price would remain constant and output would increase. B. price would increase but its output would remain constant. C. price would increase, and its output would decrease. D. price would decrease, and its output would increase.
The more time people have to adjust to a price change:
A. will not affect the elasticity of their response unless it is a luxury good. B. the less elastic their demand will be. C. the more elastic their demand will be. D. will not affect the elasticity of their response unless the good is a necessity.