One of the strengths of monetary policy relative to fiscal policy is that monetary policy:
A. can be implemented more quickly.
B. is subject to closer political scrutiny.
C. does not produce a net export effect.
D. entails a larger spending income multiplier effect on real GDP.
A. can be implemented more quickly.
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As the baby boomer generation retires and takes money out of their retirement accounts, what is expected to happen to the interest rate, ceteris paribus?
A) It will increase. B) It will not change. C) It will decrease. D) It will decrease because of demand-side shocks.
The budget constraint represents:
a. all possible consumption combinations of goods that someone can afford when all income is spent. b. a single consumption combination of goods that someone can afford when all income is spent. c. all possible consumption combinations of goods that someone can afford when disposable income is spent. d. all possible consumption combinations of goods that society can afford when all income is spent.
The U.S. should
A. not engage in trade with Italy but produce beer and pizzas domestically.
B. import both beer and pizzas from Italy.
C. specialize in the production of beer and import pizzas from Italy.
D. specialize in the production of pizza and import beer from Italy.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.