Central banks can increase the money supply by:
a. Raising margin requirements.
b. Selling government securities.
c. Selling foreign exchange.
d. Making discount loans.
e. None of the above.
.D
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Refer to the above figure. A budget deficit occurs when real national income is
A) Y3. B) Y1. C) Y2. D) None of the above: cannot be determined given the information.
A movement from one point to another point on the same consumption function could be caused due to
A. changes in wealth. B. an increase in the general price level. C. decrease in the real interest rates. D. changes in disposable income.
According to behavioral economists, self-control problems:
A. are a rare aberration from rational decision making. B. are often caused by time inconsistency. C. can be easily overcome by providing decision makers with better information. D. occur frequently but have no impact on the ability of neoclassical models to predict economic outcomes.
When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A. dividend. B. a coupon payment. C. reinvestment. D. collusion.