Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
Answer: B
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Which of the following markets comes closes to the model of perfect competition?
A) automobile industry B) information technology industry C) aerospace industry D) agriculture
Which of the following statements is incorrect?
a. The Federal Reserve Open Market Committee determines fiscal policy actions for the Congress. b. The Board of Governors of the Federal Reserve is appointed, not elected. c. The Federal Reserve System was designed to be independent of the executive branch of the government. d. The chairman of the Board of Governors serves a four-year term. e. The Federal Reserve districts are distributed geographically to serve the particular interests of each region.
Whenever there is an increase in autonomous consumption spending, there will be
a. an upward shift of the aggregate expenditure line causing equilibrium GDP to rise b. an upward shift of aggregate expenditure line, but no change in equilibrium GDP c. no change in the aggregate expenditure line, but equilibrium GDP will rise d. an upward shift of the aggregate expenditure line, causing equilibrium GDP to fall e. no change in the aggregate expenditure line or equilibrium GDP
In recent years, the largest trading partners of the United States have been
What will be an ideal response?