Fiscal policy involves
A. changing the money supply to change aggregate demand.
B. printing money, borrowing, or taxing to cover government spending.
C. changing government spending or taxes to increase aggregate demand.
D. state and local authorities, not the federal government.
C. changing government spending or taxes to increase aggregate demand.
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All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
Currently in the United States, money is backed by
a. silver in the IMF vaults. b. Federal Reserve notes in banks. c. gold in Fort Knox. d. everyone's willingness to accept it.