Which of the following components of spending is not treated as a given value in the short-run macro model?
a. Net exports
b. Imports
c. Investment spending
d. Consumption spending
e. Government spending
D
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For purposes of analyzing the money stock and its relationship to relevant economic variables, money is best thought of as
a. those items that can be readily accessed and used to buy goods and services. b. currency only. c. currency plus all bank accounts. d. currency plus all bank accounts plus bonds.
If a bond has a face value of $1,000 and the bondholder receives coupon payments of $27.50 semi-annually, the bond's coupon rate is:
A. 27.5% B. a value that cannot be determined from the information provided. C. 2.75% D. 5.50%
Why does the problem of the big tradeoff arise when the government engages in the process of redistributing income using taxes and transfers?
What will be an ideal response?
An increase in the price of poultry would lead to
a. a decrease in quantity demanded of fish and an increase in the demand for poultry. b. a decrease in quantity demanded of poultry and an increase in the demand for fish. c. an increase in quantity demanded of fish and a decrease in the demand for poultry. d. an increase in quantity demanded of poultry and a decrease in the demand for fish.