In an expansion,
a. federal budget deficits tend to rise
b. federal budget deficits tend to fall
c. the federal debt tends to rise faster than in a recession
d. federal government tax receipts tend to fall
e. there is pressure on the Fed to monetize the debt
B
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Which of the following statements is true?
A) If a bank lends a sum of $600 to a firm, the sum is a part of the bank's liability. B) If a bank lends a sum of $200 to a household, the sum is a part of the bank's liability. C) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's assets. D) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's liability.
Which of the following causes the world's production possibilities curve to shift to the right?
a. a decline in the world's population due to AIDS b. a shift from capital goods to consumer goods production c. a civil war in Iraq, a major world producer of oil d. the development of a new technology that improves labor's productivity e. a worldwide recovery from a recession
Which of the following is most likely to reduce the consumption of an exhaustible natural resource?
a. a decrease in monopoly control of the market for the resource b. government tax policies that give tax breaks to entrepreneurs who search for new reserves of the resource c. implementation of a price ceiling for the resource below its equilibrium price d. government macroeconomic policies that lower the interest rate on bonds
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.