Question

Fiscal policy is usually:

1) more political than monetary policy.
2) less political than monetary policy.
3) neutral like monetary policy.
4) having the same impact on all citizens.

Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price of its motorcycles, we can expect:

1)a shift to the right in the supply curve of Hondas and lower prices for Hondas.
2)a shift to the left in the supply curve of Hondas and higher prices for Hondas.
3)a shift to the right in the demand curve for Hondas and higher prices for Hondas.
4)a shift to the left in the demand curve for Hondas and lower prices for Hondas.

A transfer payment is a payment for:

1)a military transfer to a war zone.
2)which no services were rendered by the government.
3)transfer of a debt to a different person.
4)being transferred to a different city by your employer.

Answer 1