An inflation rate that is higher than expected benefits debtors.
Answer the following statement true (T) or false (F)
True
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Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises taxes by $1 billion to keep the deficit from growing. If the marginal propensity to consume is 0.9, what is the effect on equilibrium GDP?
A) GDP increases by $900,000. B) GDP increases by $10 billion. C) GDP increases by $1 billion. D) GDP does not change.
Banks act as financial intermediaries by: a. bringing together car buyers and auto dealers
b. bringing together real estate brokers and home buyers. c. printing money for all to use. d. serving the credit needs of borrowers and the security needs of savers. e. selling shares of stock to investors.
"If the Federal Reserve raises interest rates, demand for housing is likely to fall" is a ________ statement about ________ policy.
A. positive; monetary B. normative; fiscal C. normative; monetary D. positive; fiscal
In 2016, the city of Miketown collected $250,000 in taxes and spent $350,000. In 2016, the city of Miketown had a
A. budget deficit of $100,000. B. budget surplus of 57%. C. budget deficit of $200,000. D. budget surplus of $100,000.