Part I Multiple-choice questions
Why do classical economists contend that the economy moves to its long-run
equilibrium position very quickly?
Keynes sought an alternative theory of business cycles based on his observatio
Question 2. How does the Fed monetary policies affect the value of the dollar?
The US Fed has multiple objectives. Under the Federal Reserve Act, the Fed is
directed to promote effectively the goals of maximum employment, stable prices
-Low taxes: With little to no government control, low taxes increase private income.
Individuals would retain most of the profits they produce.
-Great personal freedom: People can pursue their economic goals without any
1. The utilitarian premise of The end justifies the means is not an appropriate basis
for national policy formation. This premise essentially implies that policy makers
may use bad or immoral methods as long as they can accomplish what they want. In