A Fed purchase of gold, SDRs, a deposit denominated in a foreign currency or any other asset is just an open market ________ of these assets, ________ the monetary base
A) purchase; raising
B) sale; raising
C) purchase; lowering
D) sale; lowering
A
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
How do banks and financial intermediation support economic growth and development?
(a) By helping businesses secure the funds needed for capital accumulation and technology advancements (b) By assisting customers in buying durable and nondurable goods and services (c) By financing government expenditures when tax revenue falls below planned spending (d) By granting loans to foreign-born individuals to invest in countries outside of the U.S.
The scientific method is the dispassionate development and testing of theories about how the world works
a. True b. False Indicate whether the statement is true or false
Which of the following statements is? true?
A. The closer the substitutes for a particular commodity and the more substitutes there? are, the more inelastic will be its price elasticity of demand. B. The larger the share of a? person's total budget that is spent on a? commodity, the greater that? person's price elasticity of demand is for that commodity. C. Elasticity of demand is greater in the short run than in the long run. D. The demand for necessities is likely to be? elastic, while the demand for luxuries is likely to be inelastic. E. All of the above.