Which of the following is a problem associated with an active policy such as a stimulus package?
a. Increase in the unemployment rate
b. Increase in inflationary pressure
c. Increase in the market interest rate
d. Decrease in the market interest rate
e. Decrease in money demand
b
Economics
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At all the points above the midpoint on a linear demand curve, the value of price elasticity of demand is:
A) equal to one. B) zero. C) greater than one. D) less than one.
Economics
A monetarists would expect an increase in government spending to have a strong effect on output only if the spending increase was
a. financed by an increase in the money supply. b. financed by a sale of bonds. c. financed by an increase in taxes. d. accompanied by a higher in the deficit.
Economics