According to the classical school, the best countercyclical policy for the government to follow is to

a. increase the money supply until money demanded equals money supplied
b. cut taxes to stimulate production
c. do nothing
d. cut government spending to curb inflation
e. cut the money supply to curb inflation

C

Economics

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The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management will

a. Do nothing-it cannot violate the regulation b. Offer a bundle of both the apartment and furniture together for $1000 c. Offer the controlled rent but force the tenants to rent furniture from the management d. Both B&C

Economics

Near-monies:

A. include all financial and real assets that can be easily converted into currency. B. are certain highly liquid financial assets that do not function directly as a medium of exchange but can be readily converted into M1. C. are excluded from M2 because they are highly liquid. D. are defined as monetary balances that are immediately available, at zero cost, for household and business transactions.

Economics