Monetary policy refers to
A) actions taken by banks and other financial institutions regarding their approaches to lending, account management, etc.
B) changes in the money supply to achieve particular economic goals.
C) changes in government expenditures and taxation to achieve particular economic goals.
D) the change in private expenditures that occurs as a consequence of changes in the money supply.
B
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (3) might represent
A. government salaries paid to school teachers. B. a state university's purchase of computers. C. property tax payments. D. social security payments to retirees.
Suppose that on average there are five more car accidents for every extra inch of snowfall in a certain region. If snowfall is graphed on the y axis and car accidents on the x axis, then if we graph this relationship, the slope of the line will be
A) 25. B) 5. C) 1/5. D) 1.
An owner of a local salon realized that by decreasing the prices that she charges for haircuts, her revenue has increased. This implies that
a. The demand for her haircuts is elastic b. The demand for her haircuts is inelastic c. The demand for her haircuts is unitary elastic d. The demand for her haircuts is perfectly inelastic
A roller coaster operator produces thrill-packed rides using electricity and a roller coaster. For the roller coaster operator, electricity is
a. an opportunity cost. b. a variable cost. c. a fixed cost. d. a sunk cost.