The money demand curve shifts to the left when the Fed buys government bonds
a. True
b. False
Indicate whether the statement is true or false
False
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
When federal regulations protect birds, such as the spotted owl, lumber prices rise because
A) there is less supply of available timber. B) there is less demand for available timber. C) there is more supply of available timber. D) there is more demand for available timber.
If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as
A) a change in consumer income. B) a decrease in quantity demanded. C) a decrease in demand. D) a decrease in consumers' taste for chocolate.
By 2010, the __________ made up more than three quarters of the United States' economy, as measured by its share of the Gross Domestic Product (GDP).
A. quaternary sector B. no single economic sector holds such away in the US economy C. primary sector D. tertiary sector E. secondary sector