The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n)
a. decrease in taxes.
b. increase in government purchases.
c. increase in transfer payments.
d. All of the above are correct.
d
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The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate? b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
"According to Keynes, the economy is essentially a self-regulating system." Do you agree or disagree? Why?
What will be an ideal response?
The labor-supply and labor-demand curves for the market intersect:
A. at the equilibrium wage. B. above equilibrium price. C. at the number of unemployed people in the market. D. All of these statements are true.
Which of the following is not a financial intermediary?
A. The New York Stock Exchange B. A bank C. An insurance company D. A mutual fund