Government can push the unemployment rate below the natural rate only by:
A. instituting supply-side economic policies.
B. producing a higher rate of inflation than people expect.
C. balancing the federal budget.
D. achieving zero inflation.
B. producing a higher rate of inflation than people expect.
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Refer to the scenario above. Suppose Edwin consumes the total output produced. What is likely to happen in this case?
A) GDP will remain unchanged. B) GDP will decrease. C) Trade surplus will increase by $200. D) GDP will increase.
The Convertibility Law of April 1991 in Argentina
A) pegged the Argentinean currency to the US dollar at a ratio of one to one. B) pegged the Argentinean currency to the US dollar at a ratio of one to two. C) pegged the Argentinean currency to the US dollar at a ratio of one to 0.5. D) represents an era of floating exchange rate in Argentina. E) pegged the Argentinean currency to the British pound at a ratio of one to one.
If the excess reserves-to-deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline B) decline; increase C) increase; decline D) increase; increase
Which of the following is NOT true of restrictive covenants?
A) They sometimes require borrowers to maintain the value of collateral offered to the lender. B) They increase the marketability and liquidity of loans. C) They sometimes require a borrower to maintain a certain minimum level of net worth. D) They sometimes limit a borrower's risk taking.