Some economists argue that increases in government spending are not a likely source of continued inflation because
A) increases in government spending cause reductions in other spending components.
B) government spending is not created by the Fed.
C) increases in government spending can be financed by money creation.
D) a and b
E) a and c
A
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The addition of government to the circular-flow model illustrates that government
A. purchases goods in the product market. B. provides services to businesses and households. C. purchases resources in the resource market. D. does all of these.
Use the following graph to answer the next question.
If Canadian investors buy more U.S. financial and real assets, ________.
A. the demand curve will shift right B. the demand curve will shift left C. the supply curve will shift right D. the supply curve will shift left
Which of the following is not a type of "lock-in" that acts as a barrier to entry into a particular market?
A) Pricing at or below the average cost of production. B) Purchases of durable goods. C) Loyalty programs. D) Specialized suppliers.
A one-year discount bond with a face value of $1000 that is currently selling for $900 has an interest rate of
A) 5.26%. B) 10%. C) 11.1%. D) 100%.