From a macroeconomic perspective, the problem of low household saving has probably been overstated because:
A. household saving represents a smaller share of national saving than does public saving.
B. it is national saving, not household saving, that allows an economy to accumulate new capital.
C. household saving is not related at all to an economy's ability to accumulate new capital.
D. household saving has been increasing steadily over the last three decades.
Answer: B
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Monetarists would likely argue that the severe recession of 2007-2009 was primarily caused by
A. too much deregulation of the financial sector in previous years. B. excessive money supply creating a bubble in some sectors of the economy. C. wide swings in investment expenditures driving erratic fluctuations in aggregate demand. D. adverse aggregate-supply shocks causing tremendous unemployment.
Public debt is held as
A) Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B) U.S. Notes. C) Federal Reserve Notes. D) corporate bonds and common stocks of the largest companies.
According to the text, the actual M2 multiplier in the United States today is
A) about 5. B) between 1.0 and 2.0. C) negative. D) over 10.
If nominal GDP is $954 billion and velocity is 9, then the money supply: a. is $106 billion
b. is $122 billion. c. is $98 billion. d. is greater than $8 trillion.