Do economists know the value of the MPC for most economies?
A. Yes, with a high level of precision.
B. Yes, with a certainty level of four decimal places.
C. No, it is impossible to determine a national MPC.
D. Yes, but with some level of uncertainty.
Answer: D
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GDP measured with constant prices is referred to as
A) real GDP. B) nominal GDP. C) the GDP deflator. D) industrial production.
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
When a good becomes more expensive, it yields less satisfaction per dollar, so consumers buy less of it and more of other goods. This is called the _____ effect
a. substitution b. income c. replacement d. augmentation e. disbursement
Quantitative easing involves policies that are designed to:
A. directly increase aggregate demand through increased government spending. B. indirectly increase the money supply by decreasing interest rates. C. directly increase the money supply by a certain amount. D. indirectly increase aggregate demand through decreased taxes.