Inside lags are
A) longer for fiscal policy than for monetary policy.
B) the same for fiscal policy and monetary policy.
C) more variable for monetary policy than for fiscal policy.
D) longer for monetary policy than for fiscal policy.
A
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If the money multiplier is approximated to be 4, then the reserve ratio must be:
A. 25 percent. B. 2.5 percent. C. 5 percent. D. 4 percent.
If the price of a commodity increases, all other things unchanged, you would expect the:
A) demand to decrease. B) quantity demanded to increase. C) quantity demanded to decrease. D) demand curve to shift to the left.
Most remittances flow toward:
A. European nations. B. advanced industrial nations. C. developing nations. D. North America.
Caroline is an artist. She purchases canvases, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, even though an art lover would pay $4,500 for that painting. How much market value does
Caroline add? A) $75 B) $1,425 C) $1,500 D) $4,425