A. An idle because
B. An active balance
C. Directly related to interest rates
D. Inversely related to income
A. shift out in a parallel fashion
B. shift in a parallel fashion
C. Become steeper
D. Become flatter
A. The central bank controls interest rates on long-term bonds issued by the governments of the member countries of the currency union
B. Government of the member countries of the currency union may run large budget deficit and so crowd out private investment
C. government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rates on the bonds these countries governments issue
D. It is difficult to raise enough tax revenue to pay for the operation of the currency union
A. balance of payments
B. capital account
C. current account
D. balance of trade
A. fiscal policies
B. incomes policies
C. supply-side policies
D. monetary policies
A. The government regulation of financial intermediaries
B. The spending and taxing policies used by the government to influence the economy
C. The actions of the central bank in controlling the money supply
D. The government’s attitude to taxation
A. there is no income effect when tax rates are changed
B. the income effect of a wage change is greater than the substitution effect of a wage change.
C. there is no substitution effect when tax rates are changed
D. the substitution effect of a wage change is greater than the income effect of a wage change