A ________ means that government spending and taxes are equal. Group of answer choices
A. fiscal budget
B. contractionary fiscal policy
C. discretionary fiscal policy
D. balanced budget
Ans:D. balanced budget
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In the short run, a change in the equilibrium price will
A) always lead to inflation. B) cause a shift in the demand curve. C) cause a shift in the supply curve. D) cause a change in the quantity demanded or supplied.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period and GDP Price Index remain the same. b. The quantity of real loanable funds per time period rises, and GDP Price Index falls. c. The quantity of real loanable funds per time period rises, and GDP Price Index rises. d. The quantity of real loanable funds per time period falls, and GDP Price Index falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
The balance of trade measures the:
A. difference between the value of imports and that of exports. B. exchange rate needed to make imports equal exports. C. share of U.S. exports going to various regions of the world. D. share of U.S. imports coming from various regions of the world.
The purchasing power of money increases as the:
A. demand increases. B. unemployment decreases. C. price level falls. D. production increases.