When the Federal Reserve extends a discount loan to a bank, the monetary base ________ and reserves ________
A) remains unchanged; decrease
B) remains unchanged; increase
C) increases; increase
D) increases; remain unchanged
C
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If the government ran a major deficit, and there was no noticeable effect on the level of GDP, this could be taken as evidence of
A. crowding-in. B. structural deficit. C. crowding-out. D. monetary policy ineffectiveness.
In the long run, monopolistically competitive firms are ________ to perfectly competitive firms because ________
A) similar; both firms produce at the minimum ATC B) similar; both firms make zero economic profit C) not similar; monopolistically competitive firms set P = MC to maximize profits D) not similar; monopolistically competitive firms can make an economic profit and perfectly competitive firms cannot
The ______ the Lorenz curve is from/to the line of perfect equality, the _____ is the Gini coefficient, and the __________ income equality exists.
A. farther; higher; less B. farther; higher; more C. closer; higher; less D. closer; lower; less
In fiscal year 2011, the U.S. government ran a deficit of about $1,300 billion. In fiscal year 2012, the government ran a deficit of about $1,087 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.