Contractionary fiscal policy would tend to make a budget deficit become:
A. Bigger
B. Smaller
C. A trade deficit
D. A trade surplus
B. Smaller
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Farmer Brown produces corn in a perfectly competitive market. Farmer Brown produces and sells 500 bushels of corn. The market supply and demand curves are illustrated in the above figure
a. What is Farmer Brown's total revenue? b. What is Farmer Brown's marginal revenue?
Monetarists believe that:
a. velocity is constant. b. velocity is highly predictable. c. there are three motives for demanding money. d. changes in the money supply cause changes in velocity. e. a change in the money supply can affect real GDP.
What are the advantages of a fractional reserve banking system compared to a system that requires 100 percent of deposits to be kept on reserve?
An individual's labor-supply curve reveals how he or she chooses to allocate
a. limited dollars between luxuries and necessities. b. scarce money between goods and services. c. scarce time between labor and leisure. d. limited time between work at one job and work at another.