Refer to Figure 8A.1. Moving from K0 to K1
A) saving becomes negative. B) capital stock continues to increase.
C) depreciation starts to decline. D) economic growth stops.
B
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When was the last year the United States had a budget surplus?
A) 2001 B) 1993 C) 2014 D) 1984
The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash. C) the reserve ratio increases. D) banks hold more excess reserves.
An open market sale by the Fed causes the value of the dollar to
A) fall, increasing net exports. B) rise, reducing net exports. C) fall, reducing net exports. D) rise, increasing net exports.
Which of the following taxes has the greatest effect on the natural rate of unemployment?
a) income taxes b) retail sales taxes c) Social Security taxes d) real estate taxes e) inheritance taxes