Fiscal policy occurs when:
A. the government changes its plan for spending and taxing.
B. the Federal Reserve makes changes to the federal budget.
C. the government changes its plan for the money supply.
D. the government raises or lowers nominal interest rates.
Ans: A. the government changes its plan for spending and taxing.
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The price elasticity of demand for a particular good is influenced by which of the following factors?
a. b and c. b. The income of the buyers. c. The availability of substitutes. d. The level of competition among sellers. e. How many uses the good has.
Refer to Figure 15.7. Suppose the Federal Reserve buys bonds in the open market. The money supply will ________ and cause a shift from point ________.
A. increase; C to point B B. decrease; C to point D C. decrease; B to point C D. increase; D to point C