Austerity measures typically involve:
A. reductions in government spending and tax increases.
B. increases in government spending and tax cuts.
C. the purchase of assets and equity from troubled financial institutions.
D. a return to the gold standard.
Answer: A
Economics
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The value of marginal product of the tenth worker hired by a firm is $50. What is the maximum wage that should be paid to the worker?
A) $5 B) $500 C) $50 D) $0.20
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Refer to Scenario 2. Once the full impact of the Fed's open market sale works its way through the banking system, what is the maximum change on the money supply as a result of these two events?
A) Money supply rises by $5,000. B) Money supply rises by $500,000. C) Money supply falls by $50,000. D) Money supply falls by $500,000.
Economics