The theory of liquidity preference postulates that the demand for real money balances, plotted against the interest rate, is:

Fiscal policy can be offset by the actions of each of the following EXCEPT:

A. businesses. B. consumers. C. Congress. D. The Federal Reserve.

In order to be classified as a recession, a contraction of general economic activity must last at least

A) one year. B) six months. C) one period. D) one quarter. E) None of the above because recessions do not have a minimum length.