The U.S. Air Force pays a Turkish citizen $30,000 to work on a U.S. base in Turkey. As a result,
a. U.S. government purchases increase by $30,000; U.S. net exports decrease by $30,000; and U.S. GDP is unaffected.
b. U.S. government purchases increase by $30,000; U.S. net exports are unaffected; and U.S. GDP increases by $30,000.
c. U.S. government purchases, net exports, and GDP are unaffected.
d. U.S. government purchases are unaffected; U.S. net exports decrease by $30,000; and U.S. GDP decreases by $30,000.
a
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A policy that results in slow and steady growth of the money supply is an example of
a. an "easy" monetary policy. b. a "passive" monetary policy. c. a "practical" monetary policy. d. an "active" monetary policy.
Many economists believe that the difference between savings accounts and checking accounts is disappearing.
Answer the following statement true (T) or false (F)
The marginal rate of substitution is measured along
A. a given budget line. B. a given indifference curve. C. the total utility curve. D. the demand curve.
If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________
A) increase; not change B) not change; increase C) not change; not change D) decrease; increase