A raise in the price of a product causes _____.
(A) A decrease in supply.
(B) An increase in demand.
(C) A decrease in competition.
(D) An increase in competition.
Ans: (D) An increase in competition.
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All of the following were provisions of the 2009 American Reinvestment and Recovery Act except
A) a temporary extension of unemployment benefits. B) expanded tax credits for parents for their children's college tuition. C) a reduction in government-funded infrastructure spending. D) a reduction in employees' payroll tax contributions.
How does monetary policy work in the short run?
A. Fed open market purchases, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase B. Fed open market purchases, reserves/money supply decrease, disposable income increases, consumption increases, demand increases, price and output increase C. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase D. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increases E. Fed open market purchases, government spending increases, demand increases, price and output increase