Government fiscal policy involves changing which of the following?
A. Interest rates.
B. Taxes and government spending.
C. Regulations on business.
D. The amount of money in circulation.
Answer: B
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The size of the effect of a given deposit of cash into a demand deposit account on the money supply is smaller:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves. c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
The marginal-cost curve intersects the average-total-cost curve at the minimum point of the average-total-cost curve
a. True b. False Indicate whether the statement is true or false