The aggregate demand curve shows that when the price level rises, the quantity of real GDP demanded decreases.
Answer the following statement true (T) or false (F)
True
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Any action that gives rise to a demand for foreign currency is a
A) deficit item on the current, financial, or capital account. B) deficit item on the current account and a surplus item on the financial and capital accounts. C) surplus item on the current account and a deficit item on the capital and financial accounts. D) surplus item on the current, financial, or capital account.
Refer to Scenario 15.1. If the interest rate is expected to fall to 5% in years 4 and 5, in terms of current dollars the value of the Muckrakers payments will
A) rise. B) stay the same. C) fall. D) change, but we cannot answer this question without further information.
Every time the Fed buys or sells on the open market, the __________ changes
A) budget deficit B) income tax rate C) money supply D) a and b E) a, b, and c
A change in government spending and/or taxes as the result of legislation is called:
A. open market operations of the Federal Reserve. B. discretionary fiscal policy. C. balanced budget operations. D. discretionary monetary policy.