Fighting inflation by slowing the growth of aggregate demand is
a. endorsed by most politicians.
b. a convenient way to reduce inflation.
c. unpopular with politicians.
d. always easily accepted by firms and workers.
c
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The Consumer Price Index (CPI) is an index of the cost of a market basket of goods purchased by a typical household
a. True b. False
All of the following are examples of changes in U.S. assets abroad except
a. Disney opens a new theme park in Brazil b. a U.S. citizen buys stock in a British car company c. a Japanese investor buys U.S. government bonds d. McDonald's closes an unsuccessful restaurant in Russia e. Exxon builds an oil refinery in Mexico
Aggregate supply grows over time because of growing consumer and government spending
a. True b. False Indicate whether the statement is true or false
An open-market purchase of foreign bonds to increase a central bank's international reserves:
A. increases the central bank's liabilities and decreases its assets. B. increases the central bank's liabilities and assets. C. decreases the central bank's assets and liabilities. D. increases the central bank's assets but decreases its liabilities.