A supply-side policy to cure stagflation would include
A. Reduced government spending.
B. A higher reserve requirement.
C. Reduced government regulation.
D. The purchase of securities in the open market by the Fed.
Answer: C
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Which of the following functions is NOT performed by any of the twelve regional Federal Reserve Banks?
A) check clearing B) conducting economic research C) setting interest rates payable on time deposits D) issuing new currency
If business taxes rise in a large open economy, it causes the current account to ________ and saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving
a. True b. False Indicate whether the statement is true or false
GDP is based on the market value of goods and services produced in an economy and not on the value of only final goods and services
a. True b. False Indicate whether the statement is true or false