Refer to Figure 27-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) buy Treasury bills B) increase income taxes
C) increase government spending D) decrease the discount rate
B
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How would expansionary monetary policy affect the AD curve?
A) It would become more static. B) It would shift to the left. C) It would fall. D) It would shift to the right.
Which of the following equations for domestic absorption is correct?
A) a ? c + i + g + im B) a ? c + i + g + im - x C) a ? x - im D) a ? c + i + ca + im
A change in nominal GDP sums up changes in
A) prices alone. B) physical production alone. C) physical production and hours of production time. D) physical production and prices.
When banks are short on their reserves, they can either borrow from the ____ or from the ______.
Fill in the blank(s) with the appropriate word(s).