Monetary policy affects the economy ________.
A. indirectly through changes in taxes
B. directly through changes in government spending
C. directly through changes in the aggregate supply
D. indirectly through changes in the interest rate.
Answer: D
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Moral hazard is more likely to arise when:
A. one side of an economic relationship cannot observe the behavior of those on the other side. B. adverse selection is present. C. insurance policies have high deductibles. D. people are uninsured.
An export is a product:
A. produced in and purchased by residents of the home country. B. produced in and sold to the residents of a foreign country. C. produced in the home country and sold in another country. D. produced in a foreign country and purchased by the residents of the home country.
Property rights are protected by
A. rivalry and excludability. B. bargaining and negotiation. C. taxes and subsidies. D. injunctions and liability rules.
If the demand for a good is inelastic, an increase in its price will result in a decrease in total revenue
a. True b. False Indicate whether the statement is true or false