An increase in government purchases will increase aggregate demand because
A) government expenditures are a component of aggregate demand.
B) consumption expenditures are a component of aggregate demand.
C) the decline in the price level will increase demand.
D) the decline in the interest rate will increase demand.
Answer: A
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A stock option is said to be "out of the money" if:
A) the strike price equals the exercise price. B) stock price equals the strike price. C) strike price exceeds the stock price. D) stock price exceeds the strike price.
The money multiplier can be as ________ as the reciprocal of the reserve ratio but is usually ________.
A. high; lower B. high; constant C. low; constant D. low; higher
An increase in the price of gasoline will cause the demand curve for tires to shift in which direction?
What will be an ideal response?
When the Fed purchases securities on the open market, the securities it buys are
A. common stock of United States corporations. B. corporate bonds. C. securities issued by state governments. D. securities issued by the federal government.