The aggregate demand curve increases if
A) the Fed increase the discount rate.
B) the Fed buys government bonds.
C) the Fed increases the required reserve ratio.
D) the government increases taxes.
Answer: B) the Fed buys government bonds.
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Deflating refers to
a. discounting a future value into its present value by accounting for the opportunity cost of money b. converting a real value into its associated nominal value c. using the discount rate to correct for environmental benefits or costs accruing in some future time period d. none of the above
The Bureau of Labor Statistics surveys consumers to determine a fixed basket of goods
a. True b. False Indicate whether the statement is true or false
Exhibit 9-5 Keynesian aggregate expenditures model where the MPC is 0.75
?
The economy shown in Exhibit 9-5 is:
A. in a recessionary gap. B. in an inflationary gap. C. fully employed. D. substantially underemployed.
Refer to the scenario above. What is the present value of Option C?
A) $2,763.64 B) $3,662.44 C) $4,516.80 D) $5,800.79