Supply-side economics
A. promotes reducing taxes to create incentives to increase productivity.
B. promotes expansionary fiscal policy by simultaneously increasing taxes and government spending.
C. is based on the Ricardian equivalence theorem.
D. is based on the crowding-out effects.
Answer: A
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A substantial appreciation of the U.S. dollar will likely result in, all else equal,
A) lower demand for U.S. products and layoffs of U.S. workers. B) increased demand for U.S. products and increased employment of U.S. workers. C) lower foreign currency prices of U.S. products in foreign countries. D) higher U.S. dollar prices of foreign products in the United States.
Efficient production can be carried out anywhere on or below the production possibilities frontier
a. True b. False Indicate whether the statement is true or false
Which of the following fall during a recession?
a. both retail sales and employment b. retail sales but not employment c. employment but not retail sales d. neither employment nor retail sales
If the FOMC orders a purchase of government securities from member banks, where does the FOMC get the money to pay for the securities?
A. It creates money to pay for the securities by adding the purchase amount to the banks’ reserves. B. It pays for the securities with new Federal Reserve notes. C. It borrows the necessary funds from the Treasury. D. It auctions off part of the securities it already owns.