In the above figure, the sum of real planned investment spending, government expenditures, and net export spending is equal to
A. $0.5 trillion.
B. $1.0 trillion.
C. $1.5 trillion.
D. $2.0 trillion.
Answer: B
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As the federal funds rate changes, other interest rates tend to move in the same direction
Indicate whether the statement is true or false
Higher saving is associated with
a. a larger capital stock and higher productivity. b. a larger capital stock but not higher productivity. c. higher productivity but not a higher capital stock. d. neither a higher capital stock nor higher productivity.
Today, the Dow Jones Industrial Average
A) consists of 30 stocks. B) is a set group of stocks that remains constant over time. C) contains stocks that are widely held by institutional investors and individuals. D) contains both stocks and bonds of large American companies. E) a and c
The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:
A. of commercial banks are unchanged, but their reserves increase. B. and reserves of commercial banks both decrease. C. of commercial banks are unchanged, but their reserves decrease. D. and reserves of commercial banks are both unchanged.