Fiscal policy is concerned with _____
a. government spending and taxation
b. government spending and changes in money supply
c. money supply and taxation
d. government spending, taxation, and money supply
e. only money supply
a
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The cost-plus-markup theory of price setting
A) explains why firms can't raise their prices until their costs rise. B) explains why percentage markups vary. C) is consistent with what many sellers say about how they set their prices. D) takes demand into account in explaining relative prices.
A major difference between the transactions demand for money and the precautionary demand is that the
A. transactions demand means that people are foregoing interest but they are not foregoing interest in the precautionary demand. B. transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures. C. transactions demand is for emergencies while the precautionary demand is for every day expenditures. D. transactions demand leads to the purchase of assets while the precautionary demand does not.