An increase in government spending can lead to a decrease in GDP if the interest rate changes enough

a. True
b. False


B

Economics

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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent

Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten

Economics

If there is a decline in world autonomous consumption ________

A) the domestic real interest rate would fall B) domestic investment would rise C) net exports would fall D) all of the above E) none of the above

Economics

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

a. cyclical unemployment amounting to 0.5 percent of the labor force. b. frictional unemployment amounting to 0.5 percent of the labor force. c. structural unemployment amounting to 0.5 percent of the labor force. d. search unemployment amounting to 0.5 percent of the labor force.

Economics

Describe how near-monopoly behavior in internet industries has fostered aggressive competition

What will be an ideal response?

Economics