Government spending is a leakage out of the circular flow of income and spending
a. True
b. False
Indicate whether the statement is true or false
False
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A reverse repurchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
Which of the following statements is true about M2?
A) Its total value is smaller than that of M1. B) Apart from those assets also included in M1, it includes no assets that offer check-writing features. C) Its total value is about five times as large as M1. D) It includes large-denomination time deposits.
Long-run equilibrium in the goods and services market requires that
a. aggregate supply equals aggregate demand and that decision makers correctly anticipate the level of prices. b. the unemployment rate is zero. c. prices are neither increasing nor decreasing. d. aggregate supply be larger than aggregate demand.
The United States has roughly how much of the world's arable land?
A. 12 percent. B. 10 percent. C. 14 percent. D. 8 percent.