An increase in Treasury deposits at the Fed causes
A) the monetary base to increase.
B) the monetary base to decrease.
C) Fed assets to increase but has no effect on the monetary base.
D) Fed assets to decrease but has no effect on the monetary base.
B
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Which of the following is not considered investment in the national income accounts? a. The purchase of a drill press by XYZ company
b. Construction of a new housing project. c. The accumulation of inventories on a grocer's shelves. d. The purchase of 1000 shares of IBM stock.
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At below full employment, the economy is producing more than potential output
c. At below full employment, unemployment would be below its natural rate. d. All of the above are true.
Which of the following is an injection into the circular flow?
a. household saving and government spending b. business investment and household saving c. net taxes and household saving d. government spending and business investment e. net taxes and government spending
Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?
a. Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability. b. Ownership rights of a corporation may be transferred more easily. c. Large investment funds are more easily attracted by the corporation. d. Corporations are less likely to suffer from the principal-agent problem.