The school of thought that emphasizes the possibility that an economy can be in equilibrium at less than full employment with inflation and argues that by managing aggregate demand, government can achieve the most acceptable combination of unemployment and inflation is the
a. Keynesian
b. neo-Keynesian
c. monetarist
d. supply-side school
e. rational expectations school
B
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Sometimes during wars, government expenditures are larger than normal. To reduce the effects this spending creates on interest rates,
a. the Federal Reserve could increase the money supply by buying bonds. b. the Federal Reserve could increase the money supply by selling bonds. c. the Federal Reserve could decrease the money supply by buying bonds. d. the Federal Reserve could decrease the money supply by selling bonds.
There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings. They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States
A) glut; less; decrease B) glut; more; increase C) decline; more; increase D) decline; less; decrease
Curly is offered the following gamble: a 25 percent chance of winning $1,500 and a 75 percent chance of losing $500. This is a(n):
A. fair gamble. B. unfair gamble. C. better-than-fair gamble. D. almost-fair gamble.
Refer to the information provided in Figure 3.10 below to answer the following question(s).
Figure 3.10Refer to Figure 3.10. An increase in quantity supplied is represented by a movement from
A. Point B to Point A along supply curve S2. B. Point B to Point C along supply curve S2. C. S2 to S3. D. S2 to S1.