To help close an inflationary gap, the government could:
a. run budget deficits.
b. decrease taxes.
c. increase government spending.
d. run budget surpluses.
e. do nothing.
d
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Prior to the creation of the Fed, promissory notes that were issued by banks with a pledge to redeem them for gold, were known as
a. assets b. transactions notes c. precautionary notes d. FDIC vouchers e. bank notes
What is the effect of monopsony on wages?
a. higher than competitive market b. lower than competitive market c. rapidly increasing over time d. steady at equilibrium level
If an individual consumes more of Good X when his/her income doubles, we can infer that
A. Good X is an inferior good. B. the demand for Good X is perfectly inelastic. C. the individual is highly sensitive to changes in the price of Good X. D. Good X is a normal good.
When American companies buy office buildings in Australia, they are generating a
A. Demand for U.S. dollars and a demand for a foreign currency. B. Supply of U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a demand for a foreign currency. D. Demand for U.S. dollars and a supply of a foreign currency.