Suppose the money multiplier in the United States is 4. If the Fed wants to expand the money supply by 600 it should:
A. buy government securities worth 150.
B. sell government securities worth 150.
C. sell government securities worth 600.
D. buy government securities worth 600.
Answer: A
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A) depreciation. B) income. C) consumption. D) investment.
Refer to Figure 10.1. If Daisy contributes to the lighting, Bo should
A) contribute if Luke contributes. B) not contribute only if Luke does not contribute. C) not contribute regardless of what Luke decides to do. D) contribute if Luke does not contribute.
Explain how tax cuts can increase aggregate supply
Why do producers tend to be better represented in lobbying efforts and other elements of the political process than consumers?
What will be an ideal response?