A monetary offset occurs when:
A. the central bank responds to expansionary fiscal policy with contractionary monetary policy.
B. the central bank responds to expansionary fiscal policy with expansionary monetary policy.
C. the central bank responds to contractionary monetary policy with contractionary fiscal policy.
D. the central bank responds to expansionary monetary policy with contractionary fiscal policy.
Ans: A. the central bank responds to expansionary fiscal policy with contractionary monetary policy.
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Wealthy people are more likely than poor people to use airplanes rather than busses for interurban travel because
A) their demand for transportation is more elastic. B) their demand for transportation is more inelastic. C) they can better afford to use a higher-cost mode of transportation. D) they are more likely to ignore the relative costs of busses and airplanes. E) traveling by airplane usually costs them less than traveling by bus.
The figure above shows the demand and cost curves facing a price-setting firm. The maximum profit the firm can earn is ________.
A. $7,500 B. $8,000 C. -$1,500 D. $7,650 E. -$4,500
Normative economics
A. does not depend on market interactions. B. only looks at the best parts of the economy. C. examines how the economy actually works (as opposed to how it should work). D. embodies value judgments.
The rule of 70 states that
A) it takes an economy 70 years to double its real GDP. B) the number of years it takes an economy to double in size is 70 divided by the growth rate. C) the number of years it takes an economy to double in size is the growth rate times 70. D) the number of years it takes an economy to double in size is the growth rate divided by 70.