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Question 71 1 pts Which of the following is the best example of a government spending? wage payments to firefighters sales tax on consumer products social security payments to householdsQuestion 72 1 pts True or False: If the price of cars increase (without knowing price changes in other markets), that must mean that inflation is occurring False TrueQuestion 73 1 pts True or False: If the interest rate increases, firms are less likely to start new businesses (ceteris paribus). False TrueQuestion 74 1 pts True or False: The money supply is controlled by the Federal Government. False True

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71) social security payments to household

Social security is an example of government spending

72) false

Inflation is change in overall prices of good and services and not just one good.

73) true

Increase in interest rate increases the cost of borrowing which leads to decrease in investment spending.

74) false

Money supply is controlled by federal reserve or central bank.

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