What is the difference between monetary policy and fiscal policy?
The Federal Reserve Bank conducts U.S. monetary policy. It consists of policies to affect the financial side of the economy-most notably the supply of money in the economy. Fiscal policy is conducted by the executive and legislative branches of government, and entails decisions about taxes and government spending.
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With a flexible exchange rate, a nation can choose an inflation rate independent of the rest of the world
Indicate whether the statement is true or false
Suppose that the cross price elasticity of demand between goods A and B equals 1.5. Which of the following is TRUE?
A) A and B are complements because the cross price elasticity is greater than one. B) A and B are complements because the cross price elasticity is positive. C) A and B are substitutes because the cross price elasticity is greater than one. D) A and B are substitutes because the cross price elasticity is positive.
Government deficits of one generation cannot affect the standard of living of the next generation
a. True b. False Indicate whether the statement is true or false
The only money that can be used as a standard of value is fiat money
a. True b. False Indicate whether the statement is true or false