Which of the following weakened the demand stimulus effects of the fed's low interest rate policy during the years following the 2008-2009 recession?
a. Rising stock prices in response to the low-interest rate policy.
b. The lower cost of borrowing to undertake business investment.
c. An increase in the velocity of money.
d. A reduction in earnings of senior citizens and others from money market accounts, saving deposits, and similar forms of savings.
D
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Which of the following would not be an example of a nonproductive activity creating social losses?
a. Accountants seeking methods of tax avoidance for their clients. b. Lawyers engaged in litigation that would transfer money from one group to another. c. Lawyers hired to assist two parties in writing a contract. d. Lobbyists seeking laws that would transfer public lands to private parties without any payment.
If New Zealand is operating at potential GDP, which of the following is true?
i. New Zealand only has frictional and structural unemployment. ii. There is no inflation in New Zealand. iii. New Zealand has positive net exports. A) i, ii and iii B) i only C) i and ii D) i and iii E) ii only
Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?
A) 33 percent B) 25 percent C) 75 percent D) There is not enough information given to answer the question.
In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.