The full employment level of GDP is sometimes referred to as "potential GDP."
a. True
b. False
Indicate whether the statement is true or false
True
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The oversimplified money multiplier formula, when the required reserve ratio is m, is
a. change in money supply = change in reserves × m. b. change in money supply = (1/m) /change in reserves. c. change in money supply = (1/m) × change in reserves. d. change in money supply = m/change in reserves.
Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.
The majority of federal expenditures is spent on
A. National Defense. B. Income transfers. C. Public sector purchases of goods and services. D. Private sector purchases of goods and services.
Which of the following will cause the FE curve to shift to the left?
A. A decrease in real domestic product (Y) B. An exogenous increase in exports C. An exogenous increase in imports D. Exogenous changes that cause an increase in capital inflows