Monetary policy refers to:
A. policy directed toward increasing exports and reducing imports.
B. government policies aimed at changing the underlying structure or institutions of the economy.
C. the determination of the nation's money supply.
D. decisions to determine the government's budget.
Answer: C
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Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to increase from point a to point b?
A. a tax on wheat production B. an increase in the price of wheat C. a decrease in the price of wheat D. a subsidy for wheat production
Suppose a poverty program provides a basic benefit of $6,000, zero deductions, and a marginal tax rate of 0.6. The breakeven level of income is
A. $10,000. B. $3,600. C. $2,400. D. $6,000.