It is often reported by financial news reports that higher interest rates reduce automobile sales. If this is true, we can expect
a. fiscal policy to be more effective.
b. both fiscal and monetary policy to be more effective.
c. monetary policy to be more effective.
d. neither fiscal nor monetary policy to be more effective.
c
Economics
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Money performs all of the following functions EXCEPT serving as a i. medium of exchange. ii. unit of account. iii. barter mechanism
A) i only B) ii only C) iii only D) i and ii E) ii and iii
Economics
If the production possibilities curve is a straight line:
A. the two products will sell at the same market prices. B. economic resources are perfectly substitutable between the production of the two products. C. the two products are equally important to consumers. D. equal quantities of the two products will be produced at each possible point on the curve.
Economics