Contractionary monetary policy occurs when: a. a central bank acts to decrease the money supply in an effort to control an economy that is expanding too quickly. b. Congress and the president decrease taxes in an effort to stimulate the economy. c. a central bank acts to increase government spending in an effort to stimulate the economy. d. Congress and the president increase taxes in an effort to control an economy that is expanding too quickly. e. a central bank acts to increase the money supply in an effort to stimulate the economy.

10. problems and applications q10 consider public policy aimed at smoking. studies indicate that the price elasticity of demand for cigarettes is about 0.2. if a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 10%, it should increase the price by % . if the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be than the effect 5 years from now. studies also find that teenagers have a higher price elasticity of demand than do adults. which of the following statements are consistent with this result? check all that apply. it is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes. teenagers do not have as much income as adults, so they are more price sensitive. adults are more likely to be addicted to cigaret