If strong monetary policy stimulus is used to combat a recessionary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation
b. a rapid movement toward lower unemployment and lower inflation
c. a slow movement toward lower unemployment and higher inflation
d. a slow movement toward lower unemployment and lower inflation
a
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Refer to the scenario above. What will be the capital stock in the economy in the current year, if the capital stock in the last year was $1,000?
A) $1,400 B) $1,200 C) $1,600 D) $1,800
Janelle spends all of her income on songs from iTunes ($1 each) and applications ($5 each) for her iTouch. If she makes her best affordable choice, she purchases 20 songs and 4 applications, what is her real income in terms of applications?
A) 40 applications B) 4 applications C) 10 applications D) 20 songs
The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll
Indicate whether the statement is true or false
Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $30 million, loans and securities of $60 million, and checking deposits of $300 million. First National is in a position to make
a. no additional loans. b. $5 million of additional loans. c. $10 million of additional loans. d. $15 million of additional loans.