if the govt levies $20 billion in taxes to finance additional spending on military weapons, the net impact on total employment will be
What will be an ideal response?
small because of higher taxes will reduce spending in the private sector, which will tend to offset any jobs created by the govt. spending
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Which of the following is not a tool the Fed uses to manage the money supply?
A) open market operations B) setting the discount rate C) setting reserve requirements for deposits in the banking system D) expanding and contracting deposit insurance
Overvalued exchange rates were a persistent problem under ISI policies. In part, this was a deliberate policy in order to
A) increase imports. B) discourage exports. C) help targeted industries sell their exports. D) help targeted industries buy imports. E) increase the competition for targeted industries.
The effects of the national health care program on goods and services markets will
A) increase the marginal cost of the firm. B) increase the quantity produced of the firm. C) consumers will pay lower prices for many goods and services. D) decrease the quantity demanded for all goods and services.
During the first year of the Bush administration in 2001, the American economy
a. increased its already rapid growth rate. b. experienced high levels of inflation. c. slowed in its rate of economic growth. d. experienced a decrease in the rate of unemployment.