In an unfunded pension system where current contributions are paid out to current beneficiaries, the total amount of funds available to invest _____ and the interest rate _____
a. falls; falls
b. rises; rises
c. falls; rises
d. rises; falls
c
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Based on the above table, an open market operation in which the Fed purchased $200,000 of government securities would
A. create a reserve deficiency for the banking system. B. lead to a maximum potential expansion of the money supply of $2 million. C. cause demand deposits to fall by $200,000. D. lead to a maximum potential expansion of the money supply of $200,000.
The value of a country's exports during a particular year was $120,000 and the value of its imports was $85,000. Which of the following is true?
A) The country ran a fiscal deficit of $205,000 during that year. B) The country ran a trade surplus of $35,000 during that year. C) The country ran a budget surplus of $205,000 during that year. D) The country ran a trade deficit of $35,000 during that year.
Refer to Figure 4-6. What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) $1,200 B) $1,500 C) $1,800 D) $3,000
Refer to Table 2.3. Nominal GDP in 2013 is
A) $568.00. B) $794.00. C) $812.00. D) $961.00.