Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at point Z on the investment demand curve. Given these conditions, what policy should the monetary authorities pursue to achieve a noninflationary full-employment level of real GDP?
A. Decrease the reserve ratio
B. Decrease the discount rate
C. Sell government securities in the open market
D. Make no change in monetary policy
C. Sell government securities in the open market
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The following table provides data for an economy in a certain year.Consumption expenditures50Imports40Government purchases of goods and services20Construction of new homes and apartments30Sales of existing homes and apartments40Exports50Government payments to retirees10Household purchases of durable goods20Beginning-of-year inventory10End-of-year inventory20Business fixed investment30Given the data in the table, compute the government purchases component of GDP.
A. 20 B. 30 C. 10 D. 40
?Each economic model can be applied to many different real-world problems.
Answer the following statement true (T) or false (F)
The ________ interest rate more accurately reflects the true cost of borrowing
A) nominal B) real C) discount D) market
The cash you have in your wallet would be counted in which measure of money?
A. Hard money B. M1 C. M2 D. It would be counted in all of these