Expansionary monetary policy involves an increase in the money supply and a fall in interest rates, leading to a positive expansion in income
Indicate whether the statement is true or false
TRUE
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Gross Domestic Product in 2017 is more than five times larger than it was in 1960 but it is important to note that
A. none of the growth represented additional output of goods and services. B. this measurement of output fails to account for any of the effects of inflation. C. the population also grew substantially over the same time period. D. available graphs of output are unable to display such growth.
The income tax system serves as an automatic stabilizer over the course of the business cycle
Indicate whether the statement is true or false
Which of the following is not a principal means by which corporations obtain money for investment?
A. Selling stocks B. Selling bonds C. Retaining earnings D. Receiving dividends
In the U.S., in recent years, comparing M2 to M1 in terms of dollar value, we can say that M2
a. has grown considerably slower than M1 but is still about three times its size b. has grown faster than M1 and is about three times its size c. has grown faster than M1 but is still less than half the size of M1 d. has grown considerably slower than M1 and is less than half the size of M1 e. is about the same size as M1, varying only slightly with changes in money velocity