When the Fed increases the money supply
A) the interest rate rises and this stimulates consumption spending.
B) the interest rate falls and this stimulates investment spending.
C) the interest rate rises and this stimulates investment spending.
D) people spend less because they have more money.
B
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In New York City, Mayor Michael Bloomberg has recently recommend that the city, with the help of private donors, make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis
The payments would start after third grade and go through high school, rising each year as dropout rates get higher and a child's forgone earning potential is higher. What economic concept does this policy represent? A) public goods B) technological progress C) externalities D) the "invisible hand" E) incentives
One characteristic of a Giffen good is that it
A) is a luxury good. B) is an inferior good. C) has an upward-sloping Engel curve. D) All of the above.