An increase in income will tend to cause which of the following?
A) an increase in the monetary base (H)
B) a reduction in H
C) an increase in the interest rate
D) a reduction in the money multiplier
E) none of the above
C
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The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that
A) the money market is in equilibrium. B) people buy bonds and the interest rate falls. C) people sell bonds and the interest rate rises. D) bond prices rise so that the interest rate rises.
Explain Ricardo's theory of comparative advantage
What will be an ideal response?
A negative income tax program is:
a. b, c, d, and e. b. basically an income tax in reverse. c. based on government cash payments to the poor that are linked to their income levels. d. designed to provide a minimum level of income to the poor. e. based on cash payments that decline as income level increases.
The prices of which of the following goods would be included in the Consumer Price Index?
a. Fighter planes b. Iron ore c. Tennis shoes d. Firefighters' services e. IBM stock