In national income accounting, the consumption category of expenditures includes purchases of:
A. both new and used consumer goods.
B. automobiles for personal use but not houses.
C. consumer durable and nondurable goods but not services.
D. consumer nondurable goods and services but not consumer durable goods.
B. automobiles for personal use but not houses
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If the rate of inflation in a given time period turns out to be lower than lenders and borrowers anticipated, then the effect will be:
a. a redistribution of wealth from borrowers to lenders. b. a redistribution of wealth from lenders to borrowers. c. a net loss in purchasing power for lenders relative to borrowers. d. a net gain in purchasing power for borrowers relative to lenders.
What causes structural unemployment?
a. workers searching for suitable jobs and firms looking for suitable workers b. the persistent mismatch of workers’ skills and the requirements of jobs c. short-term cyclical fluctuations in the economy d. short-term seasonal fluctuations in the job market
An expected tax increase will tend to cause
A) an increase in stock prices. B) a reduction in stock prices. C) no change in stock prices. D) an ambiguous effect on stock prices.
The fed decreases the money supply, households and firms initially hold less money than they want to, relative to other financial assets. Households and firms will _________________ Treasury Bills and other financial assets thereby ___________________ their prices and _________________ their interest rates.
Fill in the blank(s) with the appropriate word(s).