The purpose of expansionary fiscal policy is to
a. increase output
b. prevent hyperinflation
c. slow the growth of the GDP
d. increase the separation between government and private industry
Ans: a. increase output
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A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $5 million in government securities in the bank vault. Its total reserves equal
A) $30 million. B) $10 million. C) $20 million. D) $35 million.
Which of the following is definitely not a nonexcludable public good?
A. national defense B. elementary education C. flood control D. charitable giving E. None of the above; all are nonexcludable public goods.
When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased
A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve. D) on the new indifference curve.
?A person who works part-time is considered to be:
a. employed
b. unemployed.
c. out of the labor force.
d. overemployed.