According to the assignment rule, which of the following policy mixes is appropriate for a country with high inflation, a balance of payments deficit, and fixed exchange rates?
A. Contractionary fiscal policy and contractionary monetary policy
B. Expansionary fiscal policy and contractionary monetary policy
C. Contractionary fiscal policy and expansionary monetary policy
D. Expansionary fiscal policy and expansionary monetary policy
Answer: A
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If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________
A) increases; falls B) decreases; might rise, fall, or not change C) decreases; rises D) increases; might rise, fall, or not change
In the figure above, if no one owns the lake the tax that achieves the efficient outcome is ________ per ton of pesticide produced
A) $30 B) $40 C) $20 D) $10
You earned $30,000 in 2007, and your salary rose to $80,000 in 2016. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true?
A) The purchasing power of your salary increased between 2007 and 2016. B) There was deflation between 2007 and 2016. C) The purchasing power of your salary fell between 2007 and 2016. D) The purchasing power of your salary remained constant between 2007 and 2016.
For the equation Y = a + bX, the objective of regression analysis is to
A. fit a straight line through the data scatter in such a way that the sum of the squared errors is minimized. B. estimate the variables Y and X. C. estimate the parameters a and b. D. both a and c