Government intervention
a. can provide incentives to conduct business in an illegal black market
b. plays no role in generating wealth
c. is the best way to eliminate poverty
d. does not enforce property rights
a
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In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it
A) had no interest in targeting a monetary aggregate, as evidenced by its unwillingness to target a reserve aggregate. B) was still very concerned with achieving interest rate stability. C) was committed to targeting free reserves. D) was committed to the real bills doctrine.
When the Fed is pursuing contractionary monetary policy it will tend to depreciate the value of the dollar and hence increase net exports, other things equal
a. True b. False Indicate whether the statement is true or false
Which of the following will cause a decrease in market equilibrium price and a decrease in equilibrium quantity?
A. an increase in demand B. a decrease in supply C. an increase in supply D. a decrease in demand
For two goods, coffee and scones, suppose that MU(coffee)/P(coffee) = 4 and MU(scones)/P(scones) = 3. To maximize your total utility from these two goods, you should purchase:
A. less coffee and more scones. B. more coffee and fewer scones. C. more coffee and more scones. D. less coffee and fewer scones.