The ________ lag for monetary policy tends to be much shorter than for fiscal policy because only monetary policy requires rather immediate changes in open market operations.
A. response
B. recognition
C. implementation
D. reorganization
Answer: C
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If Isabella buys two goods and the prices of both goods decrease by 50%
A) the budget constraint will be unchanged. B) the slope of the budget constraint will increase. C) the slope of the budget constraint will decrease. D) the budget constraint will shift outward in a parallel fashion.
Which of the following would shift the investment demand curve leftward?
a. An increase in business taxes. b. A decrease in business taxes. c. A tax credit for new investment. d. Firms are operating their plants at full capacity.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.
If S = -50 + 0.4Y and I = 70, then the equilibrium level of income is
A. 180. B. 300. C. 420. D. 450.