Contractionary fiscal policy is enacted when the overall effect of decisions about taxation and spending is to:

If all of the returns to a resource are in the form of economic rent,

a. the demand curve for that resource must be horizontal b. the demand curve for that resource must be vertical c. the supply curve of that resource must be horizontal d. the supply curve of that resource must be vertical e. the demand curve for that resource must be perfectly elastic

Which of the following will tend to decrease the excess reserves of the commercial banking system? a. The central bank buys bonds from the public

b. The central bank sells bonds to a commercial bank. c. The central bank reduces its discount rate. d. The central bank decreases the required reserve ratio.