An example of stimulus spending by the government might be:
A. the monthly payments a government agency makes to its employees.
B. increase in government purchases of new cars.
C. the FED engaging in open market sales of securities.
D. a cut in the government budget aimed at spurring private consumption.
Answer: B
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Which of the following statements regarding OPEC is false?
A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.
Which of the following policy actions by the Fed would cause the money supply to increase?
a. An open market sale of government securities. b. An increase in required reserve ratios. c. An increase in the discount rate. d. An open-market purchase of government securities.
Monetarists believe
A) Real GDP is not determined by M in the long run. B) velocity is constant. C) the SRAS curve is vertical. D) a and c E) a, b and c
The path of the game in Figure 12.7 will be:
A. Fred chooses a large quantity and Barney stays out. B. Fred chooses a large quantity and Barney enters. C. Fred chooses a small quantity and Barney stays out. D. Fred chooses a small quantity and Barney enters.