Fiscal policies that move the economy toward potential GDP without a change in policy are called
A) spending stabilizers.
B) economic stabilizers.
C) GDP stabilizers.
D) routine stabilizers.
E) automatic stabilizers.
E
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The broadly-defined money supply in the U.S., called M2, differs from M1 primarily in its inclusion of
A) bonds of all sorts held by the public. B) outstanding charge-account balances. C) savings deposits in financial institutions. D) Treasury bills held by the public. E) credit cards.
When an economy experiences deflation, investment will:
A. decrease, because businesses will not take out loans that will increase in value over time. B. increase, because businesses will take out loans that will increase in value. C. decrease, because businesses will spend cash instead of borrowing it. D. increase, because businesses will spend cash instead of borrowing it.
Differences in income can be accounted for by differences in: a. age
b. education. c. preferences toward leisure. d. all of the above.
If a $1,000 cash deposit is made in a bank where the reserve requirement is 10 percent, then the maximum total loans in the form of check able deposits that may be made as a result of that cash deposit is
a. $1,000. b. $5,000. c. $9,000. d. $10,000.