Author Question: If the government increases its efforts to reduce illegal drugs which of the following would explain ... (Read 57 times)

Diane · **on:** Jun 30, 2018

If the government increases its efforts to reduce illegal drugs which of the following would explain the possible unintended consequencesan increase in drug-related crimes.
a. More people will commit crimes as a result of the increased drug use.
b. Tough drug enforcement policies reduce the demand for illegal drugs.
c. Drug addicts will have an even greater need for quick cash to support their habits.
d. In the short run, both equilibrium quantities and prices will fall in the markets for illegal drugs.

Question 2

Real GDP can rise at the same time money supply falls if:
a. velocity rises rapidly enough.
b. velocity falls rapidly enough.
c. the price level rises rapidly enough.
d. either b. or c. occurs.