The concept that market forces in the macroeconomy can remedy a recession is referred to as:
a. Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession.
b. The self-correcting mechanism
c. The consumption function
d. The paradox of thrift
Answer: b. The self-correcting mechanism
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The following are hypothetical exchange rates: $1 = 140 yen; 1 Swiss franc = $0.10. We can conclude that ________.
A. 1 yen = 14 Swiss francs B. 1 yen = 280 Swiss francs C. 1 Swiss franc = 14 yen D. 1 Swiss franc = 28 yen
If the price of a visit to Sea World exceeds the marginal cost of the visit by $13, a producer surplus exists for Sea World." Is this statement true or false? Explain your answer
What will be an ideal response?
The "real burden" of the debt is directly related to
A. The idea of opportunity cost. B. How transfers redistribute income. C. The relationship between the Treasury and the Federal Reserve System. D. The difference between internally held debt and externally held debt.
What is the change in the money supply when the Fed purchases $100 worth of bonds in a 100-percent-reserve banking system?