Which of the following is correct?
a. Policy lags are normally much shorter for fiscal policy than for monetary policy.
b. Congress usually makes major fiscal policy changes in a fairly short period of time.
c. Expenditure lags are much longer for investment, the main way in which monetary policy affects aggregate demand.
d. Monetary policy affects aggregate demand more quickly than fiscal policy, such as tax or government spending changes.
c
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Economists estimate that decreasing barriers to migration by just 5 percent will:
A. decrease economic welfare of receiving countries by more than 5 percent. B. increase economic welfare by more than lifting restrictions on capital mobility in their entirety. C. decrease economic welfare of the countries that would lose their citizens to richer countries by trillions of dollars. D. increase economic welfare of sending countries by trillions of dollars.
Which of the following is an example of money serving as a medium of exchange?
a. Richard puts money into a piggy bank. b. Ellen deposits cash into a money market account. c. Sean puts a new $20 bill into his currency collection. d. Marian buys a carbo-loaded drink before a marathon.
Monetary policy has no ________.
A. implementation lag B. legislative lag C. multiplier lag D. recognition lag
In the above table, the marginal cost of the ninth unit is
A. $5.00. B. $7.00. C. $6.00. D. $4.00.